Delhi HC asks SpiceJet to pay Rs 50 cr or face grounding of two engines

The Delhi High Court, on Wednesday, granted SpiceJet a final chance to settle a payment of Rs 50 crore to its engine lessors, Team France and Sunbird France. If the airline fails to meet this obligation, it risks having two of its engines grounded, according to a report in The Economic Times (ET). Justice Pratibha Singh instructed the counsel representing SpiceJet to obtain guidance by May 3 regarding the feasible time period for the low-cost carrier to pay Rs 50 crore to its lessors. Additionally, the airline was asked to determine if the engine that was already out of operation could be returned to the lessors. Currently, the total outstanding amount stands at $10.84 million. Since the filing of the lawsuit in December last year, SpiceJet has already paid more than $5 million, the report said. Issuing a firm warning to SpiceJet regarding its overdue payments, the judge stated that if the outstanding amount remains unpaid, the airline will be compelled to have two of its engines grounded. The High Court observed that, based on its previous actions, the airline defaulted on paying the user charges. It noted the assertions made by SpiceJet's counsel that the airline is fully committed to settling the dues. The counsel argued that any adverse rulings, including grounding the engines, would not be beneficial and would instead increase the airline's financial troubles by reducing its revenue streams, the ET reported.