The ongoing lawsuit over $24 million fees relating to engine maintenance between the low-cost airline SpiceJet and Zurich-based MRO service provider SR Technics continues. The Supreme Court of India has temporarily suspended a lower court order requiring the carrier to wind up operations and settle dispute.
On January 28, 2022, the Supreme Court suspended the Madras High Court order against SpiceJet to facilitate a settlement between the airline and Credit Suisse, a Swiss financial services company acting on behalf of SR Technics. However, the suspension is only temporary, as the Indian carrier was granted three additional weeks to resolve the issue.
A dispute between SpiceJet and SR Technics ignited after the low-cost carrier reportedly failed to follow the contract terms, which was signed in November 2011, and pay $24 million for engine maintenance services of its Boeing 737 aircraft fleet.
The MRO provider stepped into partnership with Credit Suisse, which initiated legal action against SpiceJet asking the court for the liquidation of the airline’s assets to cover the alleged unpaid dues.
The air carrier opposed the suit arguing that the Swiss company allegedly did not have the Indian Civil Aviation Authority’s (DGCA) approval to provide certain engine maintenance services. This would mean that SR Technics had breached the terms of the contract.
In December 2021, the Madras High Court issued an order in favor of Credit Suisse. The order gave a green light for the liquidation of SpiceJet assets for the outstanding payment. In response, the Indian airline appealed, but its attempt was rejected by the High Court on January 11, 2022. The airline launched an appeal in the Supreme Court in late January 2022.