Chinese Lessor Moves to Repossess Four SpiceJet Boeing 737-8 Aircraft

A Chinese aircraft lessor has begun the process of repossessing four Boeing 737-8 aircraft leased to SpiceJet after the Indian carrier failed to meet its lease payment obligations.

The Directorate General of Civil Aviation (DGCA) has published deregistration notices under the Irrevocable De-registration and Export Request Authorisation (IDERA) framework following applications from two Dublin-based leasing entities, Sky High LXXVIII Leasing Co. Ltd and Sky High LXXX Leasing Co. Ltd, owned by ICBC Financial Leasing. The requests cover four grounded Boeing 737-8 aircraft located in Delhi, Hyderabad and Amritsar.

SpiceJet said the move will not affect its flight operations because the aircraft have been out of service for an extended period due to industry-wide issues affecting CFM LEAP-1B engines. The airline added that deregistration would eliminate lease costs on aircraft that have remained inactive while discussions with the lessor and engine manufacturer continue.

The filings mark one of the first significant tests of India’s strengthened aircraft repossession framework following legislative changes introduced in 2024 to enhance protections for lessors. Under the IDERA process, deregistration enables aircraft owners to recover and export leased aircraft after a payment default.

The repossession effort comes as SpiceJet continues to face financial challenges. According to industry data, the airline currently operates only a small portion of its fleet, with more than 40 aircraft remaining parked while it continues to report losses and reduced flight schedules.