New Delhi: Budget carrier SpiceJet is facing fresh insolvency proceedings, this time from Indonesia’s PT BBN Airlines over unpaid lease rentals totalling $5.94 million.
The National Company Law Tribunal (NCLT), Delhi bench, heard the case on Friday but has yet to issue a notice after SpiceJet sought time to respond. The next hearing has been scheduled for 21 April.
PT BBN Airlines claims SpiceJet leased three Boeing aircraft under specific agreements, took possession on 9 June 2024, and used them for operations. However, the airline allegedly defaulted on lease payments between May and September 2024.
According to the lessor, SpiceJet acknowledged the outstanding dues multiple times via emails and WhatsApp messages and never disputed them before the demand notice was issued. Partial payments were also made, reinforcing the airline’s liability.
“In light of the various acknowledgements, your lordships, I would say that this is a fit case for insolvency to be initiated for SpiceJet,” PT BBN Airlines’ counsel argued, urging the tribunal to act swiftly.
SpiceJet’s senior counsel, Krishnendu Datta, countered that the aircraft were delivered late, causing financial and operational losses, a fact the lessor acknowledged in communications but omitted from the petition. He added that an early termination agreement had been signed but was voided by the lessor before the insolvency plea.
SpiceJet had already lodged claims for damages before receiving the demand notice, Datta said, urging the tribunal to consider the airline’s full defence before issuing a notice.
Legal and financial turmoil
This latest case adds to SpiceJet’s deepening legal troubles.
As of March 2025, more than 20 insolvency petitions have been filed with the NCLT’s Delhi bench, primarily by aircraft lessors, vendors, and former employees. However, none have yet resulted in full-fledged insolvency proceedings.
On 6 March, the tribunal issued a notice to SpiceJet over insolvency claims from three Ireland-based lessors and a former pilot. The lessors—NGF Genesis Ltd, NGF Charlie Ltd, and NGF Alpha Ltd—alleged that the airline defaulted on $12.4 million in rental payments.
Separately, former pilot Devesh Bbyan filed a ₹1.70 crore claim for unpaid employment dues covering March 2020 to August 2022.
Amid this financial distress, SpiceJet has been making efforts to resolve disputes and stabilize operations. The airline recently raised ₹3,000 crore through a qualified institutional placement (QIP) of shares to clear outstanding liabilities.
SpiceJet has struggled since the pandemic. Its market share fell from 7.3% in January 2023 to 2.3% in August 2024, with 36 aircraft still grounded.According to the Directorate General of Civil Aviation (DGCA), the airline carried just over six million passengers in 2024, holding a 3.7% market share.
Yet, signs of a turnaround are emerging.
In the December quarter, SpiceJet posted its highest-ever profit of ₹240 crore, a 32% increase from ₹181.1 crore in the same period a year earlier. This marked its 12th consecutive profitable quarter, driven by a 14% increase in capacity.
As part of its recovery plan, the airline aims to bring 30 Boeing 737 MAX aircraft back into service over the next 12–15 months. It reintroduced the first of these jets on 29 January, signalling its comeback efforts.
On 17 March, SpiceJet founder Ajay Singh announced a ₹294 crore capital infusion through a promoter group entity. The funds, raised via warrant conversions into equity shares, will further increase the promoter group’s stake in the airline.
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