Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft
New Delhi/Mumbai: A Chinese aircraft and leasing company has written to India’s aviation regulator seeking deregistration of four narrow-bodied Boeing planes of SpiceJet, as it
New Delhi/Mumbai: A Chinese aircraft and leasing company has written to India’s aviation regulator seeking deregistration of four narrow-bodied Boeing planes of SpiceJet, as it kickstarts the process of seeking repossession of these grounded aircraft. A spokesperson for the airline told Mint the move would have no impact on its operations as the aircraft have been out of service for some time. The Directorate General of Civil Aviation (DGCA) on Monday published notices relating to repossession of four planes under the Irrevocable De-registration and Export Request Authorisation (Idera) mechanism. The requests came from two Dublin-based lessors, Sky High LXXVIII Leasing Co. Ltd and Sky High LXXX Leasing Co. Ltd. Both the lessors are special purpose vehicles (SPVs) owned by ICBCIL Aviation Co. Ltd, an aircraft leasing entity and a wholly owned subsidiary of ICBC Financial Leasing Co. Ltd., which, in turn, is wholly owned by the Industrial and Commercial Bank of China (ICBC). The DGCA had received these repossession requests on 9 July and had emailed the concerned person of the airlines on 10 July. On Monday, 13 July, the DGCA uploaded the notices on its website. Under the Idera framework, incorporated under the Cape Town Convention, aircraft lessors can seek deregistration and repossession of leased aircraft in the event of a default, law firm Sarin & Co.
said in a post on social media platform X. The Idera framework empowers lessors to get their aircraft deregistered, repossess and fly them out in cases like lease payment defaults. The applications seek deregistration of four Boeing 737-8 MAX aircraft bearing Indian registration marks, a mandatory step before leased aircraft can be repossessed and exported under Indian aviation rules. Two of these aircraft are parked at Hyderabad, one at Amritsar and the other at Delhi. ICBC is yet to respond to an emailed query from Mint. “These aircraft have been grounded for a long period due to engine HPT (high-pressure turbine) manufacturing issues,” the SpiceJet spokesperson said. The affected aircraft are powered by CFM International LEAP-1B engines, which have been hit by industry-wide durability issues that have forced airlines globally to ground aircraft for inspections and replacement of key components. “The deregistration of these aircraft will eliminate lease rental costs on assets that have remained non-operational for a prolonged period,” the spokesperson added. “There is no impact on the airline’s operations, as these aircraft have been out of service for a considerable time.” Also Read | Delhi HC asks SpiceJet to disclose assets in $8 mn Sunbird case The spokesperson added that the airline continues to remain in discussions with the lessor and original equipment manufacturer regarding return to service of these aircraft.
The BriefWire