Wednesday, April 29, 2020

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

Mumbai: The Resolution Professional of the grounded Jet Airways has served a notice to SpiceJet seeking payment for engines that were leased out to the latter.

Jet Airways was dragged to the NCLT over unpaid dues in June 2019. The tribunal had considered Jet Airways as a ‘going concern’, after which a few of Jet Airways’ assets had been leased out to industry players in order to recover some cost.

Some of the engines from aircraft flown by Jet Airways were mounted on the fleet of SpiceJet. SpiceJet was to pay a lease amount for the same. These engines are owned by Jet Airways.
While the RP declined to comment, sources confirmed that a notice has been served to SpiceJet for payment of lease amounts on the engines of Jet Airways.

When contacted SpiceJet spokesperson said, "SpiceJet denies having any outstanding towards Jet Resolution Professional.

If at all there is any amount to be recovered by Jet Resolution Professional, that has to be from the aircraft lessor and not SpiceJet.
SpiceJet has paid lessors on whose aircraft these engines are mounted in full. As per our arrangement with lessor of aircraft, the lessor has agreed to hold SpiceJet harmless against any disputes emanating from the operations of previous operator of these engines/aircraft.” This comes even as the Indian aviation industry is severely hit because of the on-going Covid-19 pandemic and the nation-wide lockdown. According to CAPA, an aviation consultancy firm, domestic airlines are set to incur losses worth $1.75 billion in the first quarter of the current financial year. SpiceJet too isn’t immune to it.
29/04/20 Forum Gandhi/Business Line

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