Budget airline SpiceJet continues to grapple with financial challenges as two more insolvency petitions were filed against it at the National Company Law Tribunal (NCLT). On Monday, Sabarmati Aviation and JetAir 17 initiated proceedings against the carrier, citing substantial unpaid dues. The tribunal has since issued a notice to SpiceJet in response to the plea from Sabarmati Aviation while requesting additional documentation from JetAir 17 to substantiate its claims.
Sabarmati Aviation, an operational creditor, has approached the NCLT seeking resolution over unpaid amounts owed by the airline. Details regarding the exact quantum of dues have not been disclosed. Meanwhile, JetAir 17 has filed a claim for outstanding payments amounting to USD 27 million, prompting the tribunal to request further supporting evidence to validate the financial demands.
The development adds to the growing list of financial disputes faced by SpiceJet, which has been under mounting pressure due to payment delays to lessors, suppliers, and other stakeholders. This latest setback follows recent operational disruptions and regulatory scrutiny, further compounding the carrier’s challenges in maintaining smooth operations.
SpiceJet, known for its budget-friendly services, has been exploring various options to improve liquidity, including sale-leaseback arrangements, additional funding, and cost-cutting measures. However, these insolvency pleas highlight the airline’s ongoing struggle to manage its financial obligations amid fierce competition and increasing operational costs in the aviation sector.
The NCLT proceedings will determine the next steps, including whether the claims warrant the initiation of a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). As the tribunal reviews these petitions, SpiceJet faces intensified scrutiny over its ability to address its financial liabilities and ensure business continuity.
Industry observers will be closely watching the outcome of these proceedings, as they could set the tone for the future of SpiceJet, which has long been a significant player in India’s aviation market.