Two Irish entities owned by ICBC Financial Leasing have requested the DGCA deregister four Boeing 737 MAX aircraft leased to SpiceJet. The July 9, 2026, filing initiates the legal process for repossession. SpiceJet claims the aircraft have been grounded for engine issues and their removal will not impact operations.
ICBC Financial Leasing Initiates Repossession Process
The aviation landscape in India has seen a renewed test of its creditor-enforcement framework as a Chinese aircraft leasing firm moved to reclaim assets from SpiceJet. On July 9, 2026, two Dublin-based special purpose vehicles, Sky High LXXVIII Leasing Co. Ltd and Sky High LXXX Leasing Co. Ltd, submitted formal requests to the Directorate General of Civil Aviation (DGCA) to deregister four Boeing 737-8 MAX aircraft.
Both leasing entities are subsidiaries of ICBCIL Aviation Co. Ltd., which is ultimately owned by the Industrial and Commercial Bank of China (ICBC). According to regulatory documents made public on July 13, the move follows a period of financial strain for the carrier. The aircraft in question are currently parked at airports in Hyderabad, Amritsar, and Delhi.
The IDERA Mechanism and Legal Enforcement
The applications were filed under the Irrevocable De-registration and Export Request Authorisation (IDERA) framework. This mechanism, which is part of the Cape Town Convention, provides a standardized legal route for lessors to recover assets when an airline defaults on its contractual obligations. As noted by Live From A Lounge, the process has become a focal point for the industry following high-profile insolvencies like Go First and Jet Airways.
Tushar Kumar, advocate at the Supreme Court of India, via Livemint
SpiceJet’s Response to Fleet Reduction
SpiceJet has publicly downplayed the potential impact of losing the four aircraft. A spokesperson for the airline stated that the jets have been non-operational for a considerable time
due to manufacturing issues with the high-pressure turbine (HPT) components in their CFM International LEAP-1B engines.
The airline maintains that the deregistration will help alleviate financial pressure by eliminating lease rental costs on assets that are not currently generating revenue. The de-registration of these aircraft will eliminate lease rental costs on assets that have remained non-operational for a prolonged period,
the spokesperson added, emphasizing that the carrier remains in discussions with both manufacturers and lessors regarding the potential return of these planes to service.
Financial Context and Operational Challenges
The repossession request arrives as SpiceJet continues to navigate significant financial headwinds. Despite raising funds in 2024, the airline has faced criticism regarding its liquidity management. Economictimes reported that a substantial portion of recent capital was directed toward statutory dues rather than operational expansion.
- Operational Fleet: Only about 11 to 12 aircraft were reported as active in recent counts, out of a total fleet of 53.
- Financial Support: The airline has accessed 1.5 billion rupees ($15.60 million) from a government-backed credit scheme, with hopes for an additional 3.5 billion rupees.
As of mid-July 2026, the status of the four aircraft remains subject to the DGCA’s review of the IDERA requests. While SpiceJet asserts that its current flight schedule will remain unaffected, the outcome of this filing will determine whether these specific assets can be exported and redeployed by ICBCIL, further reducing the carrier’s total available fleet.
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