Lessors slap legal notice on SpiceJet for aircraft part theft

Three aircraft lessors have served a legal notice on SpiceJet accusing it of theft of parts that include engines from five of the Boeing 737 freighter planes they had rented to the airline.

The parts removed from these five aircraft are being used on other planes deployed for commercial flights, as per the legal notice. The airline dismissed the charge from the lessors as “baseless and incorrect”.

The lessors, Ireland-based NGF Genesis Limited, NGF Charlie Limited, NGF Alpha Limited, have already removed two of these five planes – leased over 2018 and 2019 - from India, and intend to fly out the remaining three over unpaid dues totalling $12.68 million.

“It must be pointed out that you didn’t seek the approval of my clients before taking the aforementioned action and neither have you paid for the use of my clients’ high value equipment. Therefore, prima-facie, you are, inter alia, guilty of theft,” reads the notice sent on December 18 by advocate Nitin Sarin, managing partner, Sarin & Co.

The lessors have said that engines have been removed from three Boeing 737s, and are operating on another lessor’s aircraft. While the remaining two aircraft have had their auxiliary power units (APUs) removed. APUs provide electrical and mechanical power to an aircraft while it is on ground.

They have demanded SpiceJet return or reinstall the engines and APUs. They have also threatened that if the airline fails to comply, they will be forced to file criminal proceedings against the managing director, directors and others in the airline who are in the know.

The lessors have said that engines have been removed from three Boeing 737s, and are operating on another lessor’s aircraft. While the remaining two aircraft have had their auxiliary power units (APUs) removed. APUs provide electrical and mechanical power to an aircraft while it is on ground. | Photo Credit: PUNIT PARANJPE

“Contrary to the claims in your query, we are in active discussion with the lessor to return the grounded aircraft to service within the first quarter of 2025. Additionally, we are in advanced discussions with the same lessor for the induction of wide-body and turboprop aircraft into our fleet,” the airline said in response to a query from The Hindu.

While lease agreements may allow removal of parts that can be used on other aircraft in the airline’s fleet, the lessee is required to seek an authorisation from the lessor.

On Monday, the Delhi High Court expressed shock on a similar case where TWC Aviation had alleged removal of as many as 16 and 29 parts from two different aircraft.

Over the past two years, multiple aircraft and engine lessors have approached courts seeking SpiceJet’s insolvency over unpaid dues. Since successfully raising Rs.3000 crore through Qualified Institutional Placement in September, the airline had said it has resolved some of its disputes with various lessors including AirCastle, Wilmington Trust SP Services (Dublin) Limited and Engine Lease Finance Corporation, among others.