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Governance Focus: SpiceJet faces high costs and maintenance issues & Dubai lessor of SpiceJet Ltd. Said to cancel the registration

Dubai lessor of SpiceJet Ltd. has asked India’s aviation regulator to cancel the registration of the low-cost airline’s three planes as SpiceJet faces high costs and maintenance issues. In a notice to India’s aviation regulator on Friday, UAE-based AWAS did not specify why it was seeking to cancel the registration of three Boeing 737s. SpiceJet told  it was gradually returning older aircraft, including these three planes, as part of its modernization plan.

“These returns were planned and will have no impact on our operations,” a company spokesperson said by email. SpiceJet returned 12 old Boeing aircraft to lessors last year, a statement said. AWAS did not immediately respond to an email seeking comment. India’s director general of civil aviation on Wednesday ordered SpiceJet to halve its flights for eight weeks after technical issues raised safety concerns.

Landlords typically apply for deregistration when leases are terminated for reasons including non-payment of rent. AWAS made its application under the provisions of irrevocable deregistration and export authorization, which are usually made after payment negotiations between the lessor and the airline have failed.

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