**SpiceJet Faces New Insolvency Claims Amid Operational Revival Efforts**
SpiceJet Ltd is facing new insolvency claims from three aircraft lessors based in Ireland and a former pilot, stemming from defaults on rental and employment payments, as the financially troubled airline seeks to resume operations. The three Irish lessors—NGF Genesis Ltd, NGF Charlie Ltd, and NGF Alpha Ltd—have accused SpiceJet of failing to make rental payments, with their total claims reaching $12.4 million. These lessors approached the National Company Law Tribunal (NCLT) after previously issuing a legal notice to the airline in December, alleging theft of aircraft parts, including engines, from five leased Boeing 737 freighter planes.
In addition, a former SpiceJet pilot, Devesh Bbyan, has filed a claim for ₹1.70 crore for unpaid wages from March 2020 to August 2022. During a brief hearing at the Delhi bench of the insolvency court, SpiceJet requested additional time to respond, citing ongoing settlement discussions. As a result, the NCLT postponed the hearing on the lessors’ claims until April. In the case of the pilot, the NCLT instructed the airline to submit a response and required the pilot to clarify how his claims are not prohibited under Section 10A of the Insolvency and Bankruptcy Code, which temporarily halts insolvency proceedings for defaults occurring after March 25, 2020, due to pandemic-related relief measures.
These latest claims contribute to a growing number of insolvency petitions against the financially struggling SpiceJet. As of February, approximately 20 such cases had been filed with the NCLT Delhi bench, primarily by aircraft lessors, vendors, and pilots. Among these, five cases have been settled and withdrawn, two are in settlement discussions, seven are pending, and two have been dismissed. Notably, none of these cases have yet led to full insolvency proceedings. In February, two former SpiceJet pilots also approached the Delhi NCLT, seeking to declare the airline bankrupt over unpaid dues totaling ₹3 crore.
The aircraft lessors involved in these claims have accused SpiceJet of defaulting on payments and allegedly misappropriating parts from leased aircraft. Meanwhile, SpiceJet is working to resolve its disputes with creditors following a recent ₹3,000 crore fundraising through a qualified institutional placement of shares. The airline has faced significant financial and operational challenges since the onset of the pandemic, with its domestic market share plummeting from 7.3% in January 2023 to 2.3% in August 2024, and 36 of its aircraft currently grounded. According to the Directorate General of Civil Aviation, SpiceJet carried just over 6 million passengers in 2024, holding a market share of 3.7%.
To revive its operations, SpiceJet plans to reintroduce 30 Boeing 737 MAX aircraft within the next 12 to 15 months. On January 29, the airline successfully brought its first ungrounded 737 MAX back into service.
