AIRCRAFT LEASE AGREEMENT
SpiceJet faces contempt notice from Delhi HC for non-compliance
The Delhi High Court issued a contempt notice to SpiceJet and its executives for failing to comply with a May 27 order to return two Boeing aircraft and three engines to lessor TWC Aviation Capital. The court warned that contempt proceedings will proceed unless SpiceJet complies by July 8.
IndiGo to receive compensation from Pratt & Whitney for grounded aircraft
IndiGo's parent company, InterGlobe Aviation, has announced that it will receive a "customised" compensation from Pratt & Whitney's affiliate firm International Aero Engine for grounded aircraft. The company has amended an existing agreement with IAE to provide IndiGo with a customized compensation for the ongoing situation of grounded aircraft due to engine unavailability.
NCLT to hear insolvency plea filed by Engine Lease Finance against SpiceJet on August 2
The National Company Law Tribunal (NCLT) has sent a notice to SpiceJet following an insolvency plea initiated by Engine Lease Finance BV, an aircraft engine lessor involved with the financially troubled airline.
Dispute with Raymach Tech settled: SpiceJet to NCLT
SpiceJet Ltd settled a dispute with Raymach Technologies over ₹2.7 crore worth of unpaid dues at the National Company Law Tribunal.
Engine Lease Finance moves insolvency plea against SpiceJet
SpiceJet, a low-budget airline, has filed an insolvency plea against its debt-ridden debtor, Engine Lease Finance BV, over non-payment of over USD 12 million. ELF has leased eight engines to SpiceJet and has claimed around USD 16 million in interest and rental. The matter was listed before the Delhi-based bench of the National Company Law Tribunal (NCLT), where SpiceJet was directed to file its response. ELF, the world's leading independent engine financing and leasing company, has previously approached the Delhi High Court after terminating a lease for two engines.
IndiGo in long haul for bigger market share
The company’s international expansion will be gradual given that the aircraft delivery is expected in 2027. A critical question is whether the airline will be able to retain the advantage of a low-cost carrier once it expands in international markets, which would increase its operating costs.
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Delhi HC asks DGCA to deregister all 54 of Go First's leased planes, gives 5 days' time
In a setback for the struggling airline, the court also restrained the RP from replacing, taking out any accessories, spare parts, documents or any material from the aircraft while directing him to provide up to date information and documentation related to the aircraft to the lessors.
SpiceJet takes ownership of Q400 aircraft from NAC to save more money
SpiceJet has secured ownership of six Q400 aircraft through a settlement with NAC, saving on monthly rentals and bolstering long-term finances. Recent agreements with aircraft lessors position the airline for substantial savings of Rs 1,252 crore.
CBI files closure report in Air India leasing case
The Central Bureau of Investigation (CBI) has filed a closure report in one of the four cases related to a leasing contract involving Air India during the UPA regime. The closure report potentially clears Praful Patel, who was the civil aviation minister at the time. The agency has been investigating alleged irregularities and misuse of office in the leasing of aircraft by the national carrier. The closure report was filed on March 19 before a special CBI court in New Delhi, and a hearing is scheduled for April 15.
SpiceJet settles Rs 755 crore liabilities of lessor
SpiceJet announced a settlement with Export Development Canada (EDC) worth Rs 755 crore, resulting in savings of Rs 567 crore. The agreement includes acquiring ownership of 13 EDC-financed Q400 aircraft, aiming to bolster the airline's balance sheet. Amid legal challenges and insolvency cases, only Carlyle Aviation Partners has agreed to convert lease arrears into a 5.91% stake
SpiceJet reaches settlement with Canada's EDC to resolve liabilities worth Rs 755 cr
SpiceJet announces a settlement agreement with Export Development Canada (EDC) to resolve liabilities amounting to Rs 755 crore, resulting in savings of Rs 567 crore. Under the deal, SpiceJet will acquire 13 EDC-financed A400 aircraft, leading to a comprehensive revitalization of its balance sheet. SpiceJet's shares surged 3.3% to Rs 60.7 per share following the announcement.
Wilmington moves NCLAT in SpiceJet insolvency case
Wilmington Trust SP Services contended that as a trustee, it could file an insolvency petition on behalf of operational creditors, which was the ground raised by NCLT, Delhi, to dismiss its petition. Counsel for Wilmington noted that NCLT, Mumbai, had passed orders in the past where it had allowed the trustee to file an insolvency petition. Wilmington filed an insolvency petition in NCLT, Delhi, in June last year over a debt of $11.2 million for leasing an aircraft to SpiceJet.
SpiceJet to lease two A340 planes for Haj operations
SpiceJet announced the lease of two wide-body A340 planes for Haj operations from Srinagar and Guwahati, with the first phase starting on May 9 to Medina. Each aircraft will seat 324 passengers. Flights are scheduled from seven Indian cities. Last year, SpiceJet's Haj operations earned Rs 337 crore. Chandan Sand, Head of Leasing and Legal, confirmed the lease agreement for the A340 aircraft and stated the airline's intent to expand its fleet through long-term leases.
SpiceJet finalises lease agreements for 10 aircraft ahead of a busy summer
SpiceJet has finalized lease agreements for ten aircraft to prepare for the upcoming summer schedule, expecting higher demand. The airline recently settled disputes with three companies, saving around Rs 685 crore. Additionally, it plans to raise Rs 2,250 crore through share and warrant sales to finance expansion initiatives. Amid cost-cutting efforts, SpiceJet is set to lay off at least 1,000 employees, aiming to save Rs 100 crore annually.
SpiceJet case: Third party agency to inspect condition of engine to avoid dispute later on, HC says
The Delhi High Court asked for the name of a third-party agency to inspect and certify the condition of SpiceJet's engine, which was leased to Brussels on an "as is where is" basis. The court on Monday had asked SpiceJet to respond to the offer. SpiceJet has already returned eight of the nine engines it had leased from Engine Lease Finance. The court has also directed SpiceJet to inform the court if it could deliver the engine under a 2017 agreement.
IndiGo signs financing pact with BOC Aviation for 4 Airbus A320NEO aircraft
BOC Aviation has signed a finance lease transaction with IndiGo for four Airbus A320NEO aircraft. The deal supports IndiGo's expansion strategy and fleet modernization efforts. The A320NEO aircraft are powered by CFM LEAP-1A engines, with all four scheduled for delivery in 2024. The partnership aims to strengthen IndiGo's position in both domestic and international markets.
Delhi HC seeks SpiceJet's response on lessor's offer to re-deliver a leased engine
Directing the SpiceJet's senior counsel to take instructions from the airline if they can deliver the engine in terms of clause 20 of the 2017 Aircraft Engine General Agreement, the high court asked the airline to inform it about its stand on Wednesday.
NCLT junks insolvency plea against SpiceJet
On Monday, the National Company Law Tribunal rejected Willis Lease Finance Corporation's insolvency plea against SpiceJet. The petition, citing default of $6.58 million, was filed under the Insolvency and Bankruptcy Code. SpiceJet contended it was not maintainable as WLFC wasn't the operational creditor or debt assignee. SpiceJet faces insolvency from multiple creditors, having settled with Carlyle Aviation Partners.
Go First lessors can take back planes, engines: DGCA to Delhi HC
A Ministry of Corporate Affairs’ October 3 notification exempted all transactions and agreements related to aircraft, their engines, and helicopters from mandatory moratorium during a bankruptcy process under IBC. The amendment was significant in view of the National Company Law Tribunal on May 10 given the Go First airline a blanket moratorium to shield it from lessors and creditors as per the Code.
SpiceJet inducts five Boeing 737 aircraft into its fleet
SpiceJet has added five leased Boeing 737s, including three Boeing 737 Max aircraft, to its fleet. The airline's expansion plans involve introducing new flight routes and services, following the recent induction of three leased Boeing 737s, including one Boeing 737 Max. SpiceJet announced earlier that it would induct a total of ten Boeing 737 aircraft into its fleet to meet increased passenger demand.
Delhi HC seeks govt's response on Go First lessor's plea for deregistration of aircraft
ACG Aircraft Leasing Ireland, a lessor of Go First airlines, has petitioned the Delhi High Court seeking deregistration of its leased aircraft due to a change in law. The Directorate General of Civil Aviation (DGCA) had suspended the applications for deregistration and export of the aircraft. ACG cites the Ministry of Corporate Affairs' notification that exempts aircraft-related transactions from the Insolvency and Bankruptcy Code. This development is significant considering Go First's insolvency resolution proceedings and the moratorium granted by the National Company Law Tribunal.
Spicejet and aircraft lessor Celestial Aviation in advanced stages of settlement
Spicejet and Celestial Aviation Services Ltd are in advanced stages of settlement over a default of $29.9 million for nine aircraft. The matter has been deferred to November 7 by the National Company Law Tribunal. Spicejet is facing insolvency proceedings from two other aircraft lessors and an engine lessor, and has argued against the maintainability of these petitions. The airline has reached out to multiple lessors with an offer to allocate shares in lieu of its dues, but only Carlyle Aviation Partners has agreed so far. The government has exempted aircraft and aircraft engines from a mandatory moratorium on assets.
WLFC asks NCLT to issue notice in Spicejet insolvency case
The senior counsel for WLFC argued that the company was within its rights to file an insolvency petition Spicejet under Section 9 of the Insolvency and Bankruptcy Code, 2016. The counsel referred to the mail correspondence between WLFC and Spicejet to establish that the servicer was handling debt negotiations in this case. The counsel also referring to the service agreement showed that the agreement allowed it on behalf of the operational creditors to collect dues.
Go First's engine lessors tell NCLT moratorium doesn’t apply; RP claims leases terminated post insolvency filing
Go First's engine lessors have argued in the National Company Law Tribunal that their assets should not be covered under the moratorium as they terminated their leases before the airline was admitted for insolvency. They stated that the legal possession of engines should be given back to the lessors. On the other hand, Go First's resolution professional questioned why the lease agreements were terminated after the airline filed for voluntary insolvency. The tribunal will hear other applicants on September 22.
GMR Hyderabad Aviation SEZ signs lease agreement with Safran Aircraft Engines for MRO
GMR Hyderabad Aviation SEZ Ltd has signed a Land Lease Agreement with Safran to lease land in Hyderabad, India for Safran to build and operate an Engine MRO facility for LEAP turbofan engines. Occupying 36,500 sqm of built-up space across 23.5 acres, the facility will have an initial capacity to service 100 engines per annum, gradually increasing to around 300 engines by 2035.
Delhi HC permits cash-strapped Go First to carry out maintenance of leased aircraft
The DGCA counsel had earlier said under the applicable framework, only Go First was authorised to look after the day-to-day maintenance of the aircraft and lessors would need approvals to do the same. Several aircraft lessors of Go First had earlier approached the single judge seeking deregistration of their planes by aviation regulator DGCA so they could take them back from the airline.
Air India signs agreement with Airbus, Boeing for 470 new aircraft
Air India's orders include 70 widebody planes, comprising 34 A350-1000s and six A350-900s from Airbus, and 20 787 Dreamliners and 10 777Xs from Boeing. It also includes 140 Airbus A320neo, 70 Airbus A321neo and 190 Boeing 737 MAX narrowbody aircraft. The airline has also signed options to buy an additional 70 planes from Boeing including 50 737 MAXs and 20 787 Dreamliners, the US planemaker said in a separate statement, making this Boeing's largest order in South Asia.
Go First crisis: What's the Cape Town Convention? Why do we need it?
The decision by the bankruptcy court will also increase India's risk profile, resulting in lessors charging higher risk premiums from other local airlines, increasing the latter's cost of doing business. Lessors have already filed for deregistration of SpiceJet aircraft, which has already defaulted on lease rentals and has been negotiating with the lessors.
SpiceJet & lessors settle disputes related to aircraft lease agreements
Budget airline SpiceJet has entered into a settlement agreement with aircraft lessor Goshawk Aviation and its affiliated leasing entities related to two Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft, it informed the exchanges on Monday.
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