Indian airline SpiceJet has been hit by a $120 million suit. The case pertains to four Ireland-registered companies, all part of the Industrial and Commercial Bank of China’s aircraft leasing business, which claim the airline has missed payments of basic rents, failed to pay for engine maintenance and damages, and needs to top up security deposits.
Indian airline SpiceJet has been hit by a $120 million suit by a Chinese bank in the High Court of Justice in London. The case pertains to four Ireland-registered companies, all part of the Industrial and Commercial Bank of China’s aircraft leasing business, which leased out three Boeing 737-800 NG aircraft and four Boeing 737-8 MAX aircraft to SpiceJet between 2012 and 2018.
SpiceJet has been hit by multiple claims by aircraft leasing companies, especially in the wake of the COVID lockdown. REPRESENTATION PIC/SATEJ SHINDE
A senior SpiceJet official told mid-day that they could not comment on the matter as it is sub judice. The airline is being represented by the law firm King & Spalding International LLP. However, this reporter was told that many such cases get amicably settled at a later stage.
The companies — Sky High LXXVIII Leasing Company Limited, Sky High LXXX Leasing Company, Sky High II Leasing Company, and Sky High XXII Leasing Company — claim that SpiceJet has missed payments of basic rents, needs to top up security deposits, failed to pay for engine maintenance, and pay for other damages all of which cumulatively amount to around $120 million.
Companies’ claim
The average monthly rent for the three NG aircraft amounted to $695,000, and the average monthly rent for the four MAX aircraft came to around $1,577,918. From March 2020 onwards, SpiceJet started to miss payments for the basic rents. This was the period when COVID-19 brought travel to a halt, severely hitting the airline industry globally.
The airline was served formal demand for payment of the outstanding rents, but they allegedly went unpaid. As a result, the security deposits and additional security deposits were used by the leasing companies to recover unpaid rents. For two of the aircraft, it is alleged, SpiceJet stopped maintenance payments.
Engines removed from two of the leased aircraft were sent to maintenance facilities in France (in October 2019) and Malaysia (in March 2022) by SpiceJet, but the airline allegedly failed to pay for the maintenance work for both. Also included in the claim are damages sought due to early redelivery of two aircraft, which caused loss of rental income and forced the leasing companies to sell the two aircraft to a different operator.
The claim against SpiceJet, lodged in April 2025 through the law firm Stephenson Harwood LLP, also specifies that the leasing companies reserve the right to bring future claims if SpiceJet fails to maintain the aircraft in accordance with the lease terms and if it fails to redeliver the NG aircraft in the condition specified in the lease agreement.
Financial health
For the financial year ending March 2025, SpiceJet reported a net profit of R48 crore as against a loss of R404 crore in the previous financial year. The profit recorded in the financial year 2025 was its first full-year profit in the last seven years. The airline has been hit by multiple claims by aircraft leasing companies, especially in the wake of the COVID lockdown.
$1,577,918
Average monthly rent for four Boeing 737-8 MAX aircraft
