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Chinese Lessors Seek Repossession of SpiceJet Planes
14 Jul
Summary
- Chinese lessors are requesting deregistration of four grounded SpiceJet aircraft.
- The planes are Boeing 737-8 MAX models facing engine manufacturing issues.
- The DGCA received repossession requests for these aircraft on July 9, 2026.
A Chinese aircraft leasing company has initiated the process to repossess four grounded SpiceJet Boeing 737-8 MAX aircraft by requesting their deregistration from India's aviation regulator. These aircraft have been non-operational for an extended period due to industry-wide durability issues with their CFM International LEAP-1B engines.
The Directorate General of Civil Aviation (DGCA) published notices on July 14, 2026, regarding the repossession requests submitted on July 9, 2026. The requests came from two lessors, Sky High LXXVIII Leasing Co. Ltd and Sky High LXXX Leasing Co. Ltd, which are subsidiaries of China's ICBC Financial Leasing Co. Ltd.
SpiceJet confirmed that the deregistration would eliminate lease rental costs for assets that have remained grounded. The airline continues discussions with the lessor and manufacturer for their return to service. However, legal experts suggest that such deregistration could reduce SpiceJet's fleet size and potentially impact its operations.
This move reflects a growing trend of lessors assertively enforcing their rights, especially amidst airline financial distress. The DGCA's action enables the lessors to repossess and potentially redeploy the aircraft globally, while SpiceJet faces continued operational and financial strain, with its market share below 3% and significant losses reported.
