Spicejet Suspends Ahmedabad-Goa Flights Amid Aircraft Deregistration Requests From Lessors

SpiceJet is facing bankruptcy proceedings as the Ireland-based aircraft lessor Aircastle Ltd has moved the principal bench of NCLT to launch a bankruptcy process against the airline.

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Three days after lessors requested the aviation regulator, DGCA, to de-register three of the airline`s planes, SpiceJet has suspended flight operations from Ahmedabad-Goa, for a month, sources in the know of things said.

However, an official at SpiceJet claimed they keep on suspending operations as per demand, and the flights are not grounded. Earlier, lessors had requested DGCA de-register one aircraft each from Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation Leasing.

The low-cost carrier, SpiceJet, is facing bankruptcy proceedings as the Ireland-based aircraft lessor Aircastle Ltd has moved the principal bench of the National Company Law Tribunal (NCLT) to launch a bankruptcy process against the airline.

Agreeing to hear the lessor`s plea, a two-member bench of the NCLT issued a notice to the airline and posted the matter for further consideration on May 17. The bench led by NCLT President Ramalingam Sudhakar directed SpiceJet to attend the hearing on the given date.

Claiming default in dues payment, Aircastle has sought initiation of corporate insolvency proceedings against SpiceJet. A spokesperson for SpiceJet commented that the notice was issued routinely in connection with the Aircastle matter.

"In the Aircastle issue, a notice was issued in normal course. There was no adverse ruling against SpiceJet. The court has recognised the fact that parties are in settlement discussions and they can continue to pursue the same," the spokesperson said.