Dubai court greenlights SpiceJet to resume operations after seizure

A recent legal dispute between SpiceJet and lessors over the seizure of an aircraft at Al Maktoum International Airport in Dubai has taken a positive turn for the airline.

The incident unfolded on November 30 when a Dubai-bound SpiceJet flight, SG 15, was diverted to Al Maktoum Airport, where it was subsequently seized by lessors upon landing.

The lessors claimed to have obtained a court order allowing them to repossess the aircraft. However, SpiceJet contested this action, revealing that the Dubai International Financial Centre (DIFC) court had issued a freezing order on October 30, 2023, related to specific engines on the aircraft.

Following a court hearing on Thursday (7), the order was discharged in favour of SpiceJet, the company said.

In response to the court's decision, SpiceJet said that the aircraft, bearing Indian registration mark VT-SLM, is now free to resume normal operations.

The airline emphasised that there is no DIFC Court order restricting SpiceJet from operating the aircraft, including departing from Al Maktoum International Airport.

Moreover, the judge overseeing the case has directed an inquiry into the losses suffered by SpiceJet due to the court order. The airline will also be reimbursed for the legal costs incurred during this legal episode.

This development comes amid a challenging period for SpiceJet, as the airline faces multiple legal battles. Four aircraft lessors have recently filed insolvency pleas against SpiceJet for non-payment of dues.

Aircastle Ireland Ltd, Willis Lease Corporation, Wilmington, and Celestial are seeking SpiceJet's admission to the insolvency process, aiming to recover their outstanding payments.

According to estimates from CAPA India, SpiceJet, which has 72 registered aircraft until the end of FY24, with 28 currently operational, is navigating a complex legal landscape as it strives to overcome financial challenges and continue its operations.

(with inputs from agencies)