Indian low-cost carrier SpiceJet, has recently been sued by Canadian aircraft manufacturer, De Havilland, for nearly USD43 million or INR320 crores. The manufacturer claims that SpiceJet, their largest operator and customer, failed to pay for 19 Dash 8-Q400 aircraft on order and has thus defaulted the payment agreements. The lawsuit has been filed with the High Court of Justice of England and Wales on March 19th, 2020.
The carrier has denied these claims calling them “completely misplaced and without any default” and has vehemently stated that it shall defend its stand and oppose these claims before the court.
Philippa King, a De Havilland Canada spokesperson, confirms to Smart Aviation APAC that the Dash 8-400 manufacturer had filed the US$42.9 million lawsuit in relation to a purchase agreement it had with the Indian low-cost carrier for the sale of 25 Dash 8-400 turboprops. De Havilland also says that only $7 Million in down payments were made by the Indian Airline and it has terminated the contracts which it has now declared as void, which entitles De Havilland to sell or lease the 90 aircraft operated or on SpiceJet's backlog. The manufacturer further added that it would recover ‘liquidated damages’ to the tune of $2.5 Million or INR18 crore per aircraft, plus interest based on the three-month London interbank offered rate (Libor), the report added. No further comments were made as this is a legal matter.
During these turbulent times due to the coronavirus pandemic, SpiceJet now also has to fight a multi-million dollar lawsuit to make things worse for it. SpiceJet operates 62 Boeing 737s and 32 Dash 8 aircraft apart from the already grounded 737 MAX.