De Havilland Aircraft of Canada is suing SpiceJet in England’s High Court for nearly $43 million in damages stemming from cancelled purchase agreements after the Indian carrier failed to make payments for the delivery of nearly 20 Dash 8-400 aircraft.
Philippa King, a De Havilland Canada spokesperson, confirms to Smart Aviation APAC that the Dash 8-400 manufacturer had filed the US$42.9 million lawsuit in relation to a purchase agreement it had with the Indian low-cost carrier for the sale of 25 Dash 8-400 turboprops.
SpiceJet has failed to take delivery of 19 aircraft in the purchase agreement and has defaulted on several payments, the claim alleges. De Havilland Canada says only US$7 million in down-payments were made on the 19 aircraft, and that it has terminated the contracts as it argues they are now void.
The manufacturer says that it is now entitled to lease or sell the 90-seat aircraft to other operators. It adds that it will move to recover “liquidated damages” of US$2.5 million per aircraft, plus interest based on the three-month London interbank offered rate (Libor).
“As the matter is before the court, we will offer no further comment at this time,” King tells Smart Aviation APAC.
According to CAPA data, SpiceJet operates 62 Boeing 737s, not including its grounded Boeing 737 Max 8 aircraft, as well as 32 Dash 8-400 turboprops.
18/03/20 Edward Eng/Smart Aviation
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Philippa King, a De Havilland Canada spokesperson, confirms to Smart Aviation APAC that the Dash 8-400 manufacturer had filed the US$42.9 million lawsuit in relation to a purchase agreement it had with the Indian low-cost carrier for the sale of 25 Dash 8-400 turboprops.
SpiceJet has failed to take delivery of 19 aircraft in the purchase agreement and has defaulted on several payments, the claim alleges. De Havilland Canada says only US$7 million in down-payments were made on the 19 aircraft, and that it has terminated the contracts as it argues they are now void.
The manufacturer says that it is now entitled to lease or sell the 90-seat aircraft to other operators. It adds that it will move to recover “liquidated damages” of US$2.5 million per aircraft, plus interest based on the three-month London interbank offered rate (Libor).
“As the matter is before the court, we will offer no further comment at this time,” King tells Smart Aviation APAC.
According to CAPA data, SpiceJet operates 62 Boeing 737s, not including its grounded Boeing 737 Max 8 aircraft, as well as 32 Dash 8-400 turboprops.
18/03/20 Edward Eng/Smart Aviation
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