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NEW DELHI: The Directorate General of Civil Aviation (DGCA) on Thursday deregistered two Boeing 737s leased to SpiceJet under the provisions of Irrevocable De-registration and Export Request Authorisations (IDERA).
The latest request was made by two Dublin-based lessors, Wilmington Trust SP Services and Aircastle (Ireland), under IDERA that provides for owner of an aircraft to get an aircraft de-registered from the name of a third party in cases like default of lease rentals.
Without giving the number of aircraft in its fleet and those operational now, a SpiceJet spokesperson said the de-registration of two aircraft “will not impact” its operations.
“While one of (these two) aircraft is grounded for a long period and was to be returned earlier, the other is being returned due to certain engine issues with lessor. Both aircraft are being returned in the most efficient manner consensually,” he said.
IDERA requires aviation regulators to de-register aircraft within five days from the name of a third party in cases like default of lease rentals.
The DGCA checks with various authorities if there are any tax dues on the aircraft within the given time frame. The idea is to ensure aircraft lessors don’t face issues in repossessing planes from defaulting on lease rentals or defunct airlines. Last year SpiceJet saw at least six aircraft being taken back by lessors under IDERA.
The low cost carrier had in 2017 ordered 155 Boeing 737 MAX with an option for 50 more. It had 13 B737 MAX when the type was grounded globally in March 2019.
While the aircraft resumed flying in India and most other countries by late 2021, Boeing has not delivered even a single new MAX to SpiceJet in the last four years. The airline takes aircraft on lease to meet its requirement.
Last month when SpiceJet’s biggest lessor — Carlyle Aviation Partner — had decided to convert $100 million dues to the airline into equity shares and compulsorily convertible debentures (CCDs), the airline had said it is in talks with unpaid lessors to do the same.
“As a part of ongoing restructuring with aircraft lessors Carlyle Aviation Partner (or its affiliated entities) and other aircraft lessors, all these CCDs will be transferred to those aircraft lessors who agree to exchange their lease liabilities for an aggregate amount equivalent to the total nominal value of such CCDs in accordance with the relevant provisions of applicable laws and receipt of applicable regulatory approvals, as may be required,” the company had said on February 27, 2023.
Carlyle will pick up over 7.5% stake in SpiceJet.
Additionally, a part of the dues will be converted into CCDs of SpiceXpress at an anticipated future valuation of $1.5 billion (Rs 12,422 crore), the airline had said then.
The latest request was made by two Dublin-based lessors, Wilmington Trust SP Services and Aircastle (Ireland), under IDERA that provides for owner of an aircraft to get an aircraft de-registered from the name of a third party in cases like default of lease rentals.
Without giving the number of aircraft in its fleet and those operational now, a SpiceJet spokesperson said the de-registration of two aircraft “will not impact” its operations.
“While one of (these two) aircraft is grounded for a long period and was to be returned earlier, the other is being returned due to certain engine issues with lessor. Both aircraft are being returned in the most efficient manner consensually,” he said.
IDERA requires aviation regulators to de-register aircraft within five days from the name of a third party in cases like default of lease rentals.
The DGCA checks with various authorities if there are any tax dues on the aircraft within the given time frame. The idea is to ensure aircraft lessors don’t face issues in repossessing planes from defaulting on lease rentals or defunct airlines. Last year SpiceJet saw at least six aircraft being taken back by lessors under IDERA.
The low cost carrier had in 2017 ordered 155 Boeing 737 MAX with an option for 50 more. It had 13 B737 MAX when the type was grounded globally in March 2019.
While the aircraft resumed flying in India and most other countries by late 2021, Boeing has not delivered even a single new MAX to SpiceJet in the last four years. The airline takes aircraft on lease to meet its requirement.
Last month when SpiceJet’s biggest lessor — Carlyle Aviation Partner — had decided to convert $100 million dues to the airline into equity shares and compulsorily convertible debentures (CCDs), the airline had said it is in talks with unpaid lessors to do the same.
“As a part of ongoing restructuring with aircraft lessors Carlyle Aviation Partner (or its affiliated entities) and other aircraft lessors, all these CCDs will be transferred to those aircraft lessors who agree to exchange their lease liabilities for an aggregate amount equivalent to the total nominal value of such CCDs in accordance with the relevant provisions of applicable laws and receipt of applicable regulatory approvals, as may be required,” the company had said on February 27, 2023.
Carlyle will pick up over 7.5% stake in SpiceJet.
Additionally, a part of the dues will be converted into CCDs of SpiceXpress at an anticipated future valuation of $1.5 billion (Rs 12,422 crore), the airline had said then.
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