What is the lawsuit that Spice Jet is facing in the UK?

Soon after Spice Jet announced plans to operate non-stop flights to London from early December 2020, Spice Jet is facing a lawsuit in London over outstanding dues worth Rs.200 crore from BOC Aviation and Wilmington Trust Services in an Irish Court.

As per the complaint filed, Spice Jet defaulted on rent and other charges as per the aircraft lease agreements. It also says that Spice Jet had not responded despite several reminders sent and legal notices served. Spice Jet has to file a reply by October 19.

The case actually refers to 3 Boeing 737-800 aircraft which Spice Jet had leased from BOC Aviation in May 2019 and another 3 Boeing 737-Max 8 aircraft leased from Wilmington. BOC has claimed Rs.48 crore in outstanding dues while Wilmington Trust has claimed Rs.156 crore.

Boeing 737-MAX 8 aircraft had been grounded globally after two major aviation accidents had claimed hundreds of lives and DGCA had banned the use of the aircraft. At that time, Spice Jet was one of the biggest buyers of Boeing 737 Max 8 aircraft and is awaiting compensation from Boeing.

The Spice Jet flights to London will operate under the air bubble agreement with UK and will fly twice from Delhi and once-a-week from Mumbai.