The Directorate General of Civil Aviation (DGCA) of India has deregistered two Boeing 737s that were leased to SpiceJet as per the terms of Irrevocable De-registration and Export Request Authorizations (IDERA). The aircraft's registration was revoked at the request of two lessors, Wilmington Trust SP Services and Aircastle (Ireland).
Under the provisions of the Cape Town Convention, in the event of a default, lessors and lenders are authorised to seek deregistration of a leased aircraft.
Senior official from DGCA said, "Under the provisions of Irrevocable De-registration and Export Request Authorisations (IDERA) it has happened."
Spokesperson from the airline confirmed: “While one of the 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. This will have no impact on our operations,"
In the event of missed lease rental payments, an aircraft lessor may unilaterally invoke IDERA to deregister and seize the aircraft from the lessee, in this case SpiceJet.
The DGCA now has five working days to deregister the jet in accordance with the guidelines.
In August of last year, six Boeing 737 aircraft belonging to SpiceJet were deregistered.
This is not the first time that IDERA has been used against SpiceJet. Previously, two foreign-based lessors, Alterna Aircraft BV and AWAS, a division of Dubai Aerospace Enterprise (DAE) had applied to DGCA to deregister one SpiceJet aircraft each.
The airline then said this was part of a plan to send back old planes as it gets new ones.
Meanwhile, the airline has managed to record a profit of INR 10.7 million during the December 2022 quarter.
Additionally, SpiceJet is planning to raise up to INR 2.500 bn by utilising the Qualified Institutional Buyer (QIB) route. Furthermore, on February 27, the carrier revealed that Carlyle Aviation Partners will acquire a 7.5% stake in the airline by converting outstanding dues and also purchasing shareholding in the cargo business.
This strategic move is expected to assist the airline in reducing its debt by $100 million.