SpiceJet Aircraft Lessors Dispute: Official Ruling on 8 Petitions Amid Terrible Crisis
The SpiceJet aircraft lessors dispute is reaching a decisive point, with the National Company Law Tribunal (NCLT) set to rule on seven insolvency petitions today after settling one of eight cases just a day earlier. Here’s the full background on the dispute, what’s already happened, and the scale of the crisis SpiceJet is facing.
What Is the SpiceJet Aircraft Lessors Dispute About?
At the core of the SpiceJet aircraft lessors dispute are eight separate insolvency petitions filed against the airline by six aircraft lessors, Aviator ML 29641 Ltd, Sabarmati Aviation, JetAir 17, Falgu Aviation, Alterna Aircraft, and AWAS Ireland, with combined claims exceeding Rs. 500 crore. The petitions accuse SpiceJet of defaulting on lease payments for aircraft it has been operating, and are being heard by a special NCLT bench of Judicial Member Mahendra Khandelwal and Technical Member Anu Jagmohan Singh.
The Aviator ML Settlement and NCLT’s Sharp Criticism
One thread of the SpiceJet aircraft lessors dispute was resolved just before a scheduled ruling, when SpiceJet settled its case with Aviator ML, which had alleged a default of roughly Rs. 58-60 crore linked to a leased Boeing 737. SpiceJet paid an initial tranche of Rs. 4.78 crore and admitted the underlying debt. The NCLT bench was not pleased with the timing, stating: “We do not appreciate the conduct of the parties, precious judicial time has been wasted,” and calling it “a mockery of the entire thing.” The tribunal fined both SpiceJet and Aviator ML Rs. 15 lakh each over the last-minute disclosure, before allowing Aviator ML to withdraw its petition.
What Happens With the Remaining 7 Petitions?
Lawyers representing the other lessors pushed back hard against any further delay in the SpiceJet aircraft lessors dispute, alleging the last-minute settlement was a “malafide” attempt to use one resolved case as leverage to stall the remaining insolvency proceedings. The NCLT bench made clear the remaining seven petitions would not be deferred again, with a ruling expected today, August 20, 2026.
How Did SpiceJet’s Fleet Get to This Point?
The scale of SpiceJet’s operational crisis is stark: roughly 80% of its fleet is currently grounded, with fewer than a dozen aircraft operational and only around 60 flights running as of a recent count. Maintenance has stalled due to spare parts shortages, and a lessor reclaimed four Boeing 737 MAX aircraft from the airline back in July, part of a broader pattern of lessors moving to take back planes over unpaid rent.
The Human Cost: Unpaid Employees
Beyond the legal proceedings, the SpiceJet aircraft lessors dispute has had a direct impact on the airline’s own staff. Many employees reportedly haven’t been paid in over two months, and some have been placed on unpaid leave as the airline works through its funding crunch.
SpiceJet’s Financial Picture
SpiceJet’s numbers reflect the severity of the situation. Over the nine months ending December 31, the airline posted a net loss of Rs. 1,138.15 crore, sharply wider than the Rs. 266.8 crore loss in the same period a year earlier, while operational revenue fell 14% to Rs. 3,271.5 crore. The airline had previously raised Rs. 3,000 crore in 2024 to help clear outstanding government dues, though that clearly hasn’t been enough to resolve the underlying pressure from its lessors.
Not the Only Major Corporate Legal Battle This Year
Extended legal disputes between major companies have made repeated headlines this year, our coverage of the NTPC Reliance commercial suit dispute looks at a very different, decades-long corporate case working its way through the courts.
Companies Under Real Financial Pressure
SpiceJet isn’t the only major company navigating serious financial strain this year, our coverage of the Accenture CEO vacation policy looks at a very different company managing its own revenue and stock pressure through internal policy changes. Official filings and updates on this case are available through the National Company Law Tribunal.
What Happens Next
With the NCLT’s ruling on the remaining seven petitions expected today, the outcome could determine whether SpiceJet faces formal insolvency proceedings or manages to reach further settlements, as it did with Aviator ML. Given how quickly this case has moved in the past few days, readers should check for the latest confirmed outcome before treating any specific ruling as final.
For more business and legal updates, check out our Business section.
Frequently Asked Questions
What is the SpiceJet aircraft lessors dispute about?
It involves eight insolvency petitions filed against SpiceJet by six aircraft lessors over unpaid lease payments, with combined claims exceeding Rs. 500 crore.
Has SpiceJet settled with any of the lessors?
Yes. SpiceJet settled with Aviator ML just before a scheduled ruling, paying an initial Rs. 4.78 crore tranche, though the NCLT fined both parties Rs. 15 lakh each over the last-minute disclosure.
When is the NCLT ruling on the remaining petitions?
The tribunal was scheduled to rule on the remaining seven insolvency petitions on August 20, 2026.
How much of SpiceJet’s fleet is currently grounded?
Roughly 80% of the fleet is grounded, with fewer than a dozen aircraft operational and around 60 flights running.
Have SpiceJet employees been affected by this crisis?
Yes. Many employees reportedly haven’t been paid in over two months, with some placed on unpaid leave.
What went wrong with SpiceJet?
A combination of mounting losses, unpaid lease rent to aircraft lessors, and a resulting funding crunch left SpiceJet unable to keep up with payments, leading lessors to reclaim aircraft, ground most of the fleet, and file insolvency petitions at the NCLT.
Is SpiceJet in financial trouble?
Yes. The airline posted a net loss of Rs. 1,138.15 crore over nine months, has roughly 80% of its fleet grounded, and is facing multiple insolvency petitions from aircraft lessors over unpaid dues.
Who owns SpiceJet Airlines in India?
SpiceJet is led by Ajay Singh, who serves as the airline’s Chairman and Managing Director.