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Monday 23 March 2015

One-third of SpiceJet Boeings off its roster

Mumbai: The Delhi High Court on Thursday ordered the Directorate General of Civil Aviation (DGCA) to deregister six of SpiceJet’s Boeing 737 planes, following the termination of lease agreements by the leasing companies, Awas and BOC Aviation.


The court order could put SpiceJet’s revival plan under stress.  The airline underwent a change of guard in January, with promoter and former director Ajay Singh stepping into the cockpit after the Marans decided to sell their majority stake to him and a consortium of investors.  Singh, along with other investors, has infused Rs 400 crore into the airline to help it clear dues and is expected to totally invest Rs 1,400 crore by April-end.

A deregistration would lead to the grounding of aircraft and SpiceJet would have to trim its schedule, unless it secures a stay order or resolves its dispute with the lessors. This could lead to the airline losing nearly a third of its Boeing capacity suddenly. SpiceJet is again faced with the possibility of flight cancellations, as happened in December when it reduced its fleet after defaulting on dues to vendors. SpiceJet shares fell 4.4 per cent over the previous close to Rs 21.75 apiece on Thursday on the BSE exchange.
20/03/15 Business Standard

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