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Jet Airways’ RP asks SpiceJet to pay for leased engines-

The Resolution Professional (RP) of the grounded Jet Airways has served a notice to SpiceJet in order to seek payment for engines that were leased out to the latter, i.e., SpiceJet. Jet Airways was dragged to the National Company Law Tribunal (NCLT)/ Adjudicating Authority over unpaid dues in June 2019. The NCLT had considered Jet Airways as a ‘going concern’, after which a few assets of Jet Airways’ were leased out to the competitors of industry to recover some cost. A notice has been served to SpiceJet for payment of lease amounts on the engines of Jet Airways. SpiceJet has paid lessors on whose aircraft these engines are mounted in full. The lessor has agreed to hold SpiceJet harmless against any disputes which are emanating from the operations of previous operator of these engines/aircraft. This is also as the Indian aviation industry is severely hit due to the on-going pandemic of COVID-19 and the nation-wide lockdown. It can thus be concluded that the RP of the grounded airlines i.e., Jet Airways has issued/ served a notice to SpiceJet to pay for leased engines to SpiceJet.

 

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