Finance
UK Court Orders India's SpiceJet to Pay $8 Million to Engine Lessor Over Unpaid Rent, Maintenance
Published by Global Banking & Finance Review®
Posted on April 9, 2026
2 min readLast updated: April 9, 2026
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A UK court ordered SpiceJet to pay ~$8 million to engine lessor Sunbird France over unpaid rent and maintenance, underscoring the airline’s deep financial distress amid mounting losses and going-concern doubts.
UK Court Directs SpiceJet to Pay $8M Engine Rent Amid Financial Woes
SpiceJet Faces Legal and Financial Challenges
By Abhijith Ganapavaram
UK Court Ruling and Background
NEW DELHI, April 9 (Reuters) - A UK court has ordered India's SpiceJet to pay about $8 million to an aircraft engine lessor over unpaid rent and maintenance charges for three engines, in the latest setback for the cash-strapped airline.
London's Commercial Court granted summary judgment on Wednesday in favour of Sunbird France 02 SAS over the unpaid rent and maintenance accruals, finding that SpiceJet had no viable defence.
Financial Strain and Market Impact
The ruling comes as SpiceJet remains under financial strain following the Boeing 737 MAX grounding and COVID-19 pandemic, and losing market share to rivals such as Akasa Air.
Timeline of Unpaid Rent and Maintenance
The unpaid rent dates from January 2022, while maintenance accruals date back to November 2020. The lessor issued default notices in July 2022 and repossessed all three engines between late 2022 and mid-2023.
Legal Proceedings and Response
SpiceJet initially hired British solicitors but never filed a defence or response to Sunbird's application, the judgement showed.
The airline did not respond to an email seeking comment.
Auditor Warnings and Financial Outlook
Its auditors have warned of uncertainty over the airline's ability to continue as a going concern, citing mounting losses and a gap between current liabilities and assets, according to its latest results.
($1 = 92.6575 Indian rupees)
(Reporting by Abhijith GanapavaramEditing by Bernadette Baum)
Key Takeaways
- •SpiceJet lost summary judgment in the London Commercial Court and must pay about $8 million to Sunbird France over engine rent/maintenance dues dating back to late 2020–early 2022, with no defence filed.
- •This legal setback compounds longstanding financial woes—auditors have flagged material uncertainty over SpiceJet’s ability to continue as a going concern, with accumulated losses eroding net worth and liabilities exceeding assets.
- •SpiceJet’s financial strain stems from pandemic disruptions, Boeing 737 MAX grounding, high fuel and lease costs, with competition from new entrants like Akasa Air further eroding its market share.
Frequently Asked Questions about UK court orders India's SpiceJet to pay $8 million to engine lessor over unpaid rent, maintenance
1Why did a UK court order SpiceJet to pay $8 million?
The court ordered the payment due to unpaid rent and maintenance charges for three aircraft engines leased from Sunbird France 02 SAS.
2What period did the unpaid rent and maintenance charges cover?
Unpaid rent dates from January 2022, and maintenance accruals date back to November 2020.
3Who is Sunbird France 02 SAS?
Sunbird France 02 SAS is the aircraft engine lessor that leased three engines to SpiceJet and initiated the legal proceedings.
4Did SpiceJet respond to the UK court case?
No, SpiceJet did not file a defence or respond to Sunbird France 02 SAS's application, according to the court judgment.
5What financial challenges is SpiceJet currently facing?
SpiceJet is under financial strain due to past aircraft groundings, the COVID-19 pandemic, increased competition, and warnings from auditors regarding its going concern status.
