SpiceJet Lessors Seek Deregistration of Four 737 MAX Jets

Irish leasing entities linked to ICBC have moved to reclaim four Boeing 737 MAX aircraft from the airline, citing a path toward repossession amid ongoing financial headwinds.

NEW DELHI — Two Irish leasing companies owned by the aviation arm of the Industrial and Commercial Bank of China (ICBC) have formally approached India’s aviation regulator to deregister four Boeing 737 MAX aircraft currently leased to SpiceJet. The move, disclosed in public notices on July 13, 2026, marks a significant development in the carrier’s ongoing efforts to navigate fleet pressures and liquidity challenges.

Regulatory Action and Repossession

The applications were filed by Sky High LXXX Leasing Company Ltd and Sky High LXXVIII Leasing Company Ltd with the Directorate General of Civil Aviation (DGCA). These entities utilized the Irrevocable Deregistration and Export Request Authorisation (IDERA) framework, a legal mechanism designed to allow aircraft lessors to directly seek the deregistration of planes, thereby facilitating their repossession and export.

The four aircraft identified in the regulatory filings are registered as VT-MXA, VT-MXC, VT-MAX, and VT-MXB. While the filings did not provide a specific reason for the deregistration request, the notices follow a trend of lessors seeking to reclaim assets from the airline amid reports of payment disputes and financial strain within the Indian aviation sector.

SpiceJet’s Operational Stance

SpiceJet has characterized the move as a cost-saving measure for assets that have long been grounded. A spokesperson for the airline stated on Monday that these specific aircraft have remained non-operational for a prolonged period due to manufacturing issues related to High Pressure Turbine (HPT) components.

"The deregistration of these aircraft will eliminate lease rental costs on assets that have remained non-operational for a prolonged period," the spokesperson said. The airline further emphasized that the decision would have no impact on its current flight operations, as these jets have been out of service for a considerable time. According to industry data, the airline is currently operating a reduced fleet, with a significant portion of its total inventory parked.

Context of Financial Headwinds

The deregistration request comes as SpiceJet continues to work toward stabilizing its operations. The airline has faced several insolvency petitions and lease disputes in recent years, though it has successfully negotiated settlements with multiple major lessors and creditors. The carrier has also been actively utilizing government-backed credit schemes and seeking additional liquidity to bolster its balance sheet and support fleet expansion.

Despite these challenges, the airline recently announced plans to scale its capacity, including the induction of A320 aircraft on damp lease arrangements and the return of other grounded 737 MAX aircraft to commercial service to meet rising passenger demand.

Official Sources

The deregistration requests were made public through official notices issued by the Directorate General of Civil Aviation (DGCA), the regulatory body overseeing civil aviation in India. Information regarding the ownership of the leasing companies was verified through corporate records linking them to [suspicious link removed], the subsidiary of the state-owned Industrial and Commercial Bank of China.

Why It Matters

For SpiceJet, the deregistration of these four aircraft is a pragmatic step to reduce fixed costs associated with grounded assets. For the broader aviation industry, the case serves as a key test of India’s aviation laws, which were amended to provide greater protection to lessors and streamline the repossession process. The outcome of this request will be closely watched by aircraft lessors operating in the Indian market, as it highlights the balance between carrier operational needs and creditor rights.

Key Facts at a Glance

• Aircraft Affected: Four Boeing 737-8 MAX jets (VT-MXA, VT-MXC, VT-MAX, and VT-MXB).

• Lessors Involved: Sky High LXXX Leasing Company Ltd and Sky High LXXVIII Leasing Company Ltd, both linked to ICBC Financial Leasing.

• Legal Framework: The lessors filed for IDERA, allowing them to seek direct deregistration and export of the aircraft.

• Airline Response: SpiceJet maintains that these planes have been grounded due to HPT manufacturing issues and that deregistration will help eliminate unnecessary lease rental expenses.

FAQ Section

What is an IDERA request? IDERA stands for Irrevocable Deregistration and Export Request Authorisation. It is a legal framework that allows aircraft lessors to approach a national aviation regulator directly to repossess leased aircraft.

Why is SpiceJet agreeing to the deregistration? The airline stated these specific aircraft have been grounded for a long time due to engine issues and that removing them from the lease agreement will reduce non-operational rental costs.

Are these the only aircraft SpiceJet is having trouble with? SpiceJet has faced multiple lease disputes and insolvency filings in recent years but has successfully reached settlements with many of its previous lessors.

Does this affect SpiceJet's current flight schedule? According to the airline, there is no impact on current operations as these four aircraft were already out of service for a prolonged period.

Source: Directorate General of Civil Aviation (DGCA) [suspicious link removed] SpiceJet Investor Relations