ICBC Leasing Arm Moves to Deregister Four SpiceJet Boeing 737 MAX Jets

On 9 July 2026, two Dublin-registered entities—Sky High LXXVIII Leasing Co. Ltd and Sky High LXXX Leasing Co. Ltd—filed Irrevocable Deregistration and Export Request Authorisations (IDERA) with India’s Directorate General of Civil Aviation (DGCA) to deregister four Boeing 737-8 MAX aircraft (VT-MXA, VT-MXC, VT-MAX, VT-MXB) leased to SpiceJet. The DGCA notified the airline on 10 July and published the notices on 13 July, initiating the statutory process that could allow the lessors, owned by ICBC Financial Leasing (a subsidiary of state-owned Industrial and Commercial Bank of China, ICBC), to repossess and export the jets.

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

India’s 2024 aviation reform, enacted under the Cape Town Convention, created the IDERA mechanism to give global aircraft financiers a clear route to recover leased assets after a payment default. Earlier high-profile cases such as Jet Airways, Go First and FlyBig have tested the framework, prompting a shift toward more assertive enforcement by lessors.

Four SpiceJet Boeing 737 MAX aircraft set to leave the airline as lessors seek repossession

• 9 July 2026 – IDERA applications submitted by Sky High LXXVIII and Sky High LXXX.

Chinese Lessor Moves to Repossess Four SpiceJet Boeing 737-8 Aircraft / aviator.aero

• 10 July 2026 – DGCA emails SpiceJet about the filings.

Lessors aim to reclaim SpiceJet aircraft due to increasing unpaid rentals

• 13 July 2026 – DGCA uploads deregistration notices on its website.

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

• SpiceJet’s fleet totals 53 aircraft; only 11 are operational, with 42 parked (Planespotters.net).

Four SpiceJet Boeing 737 MAX aircraft set to leave the airline as lessors seek repossession

• FY 26 (ending 31 Dec 2025) shows a standalone net loss of INR1,138.15 crore and revenue down 14 % to INR3,271.5 crore.

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

• Scheduled domestic departures in July fell 28 % year-on-year (OAG data).

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

• The four affected jets have been grounded for more than a year due to high-pressure turbine (HPT) issues in CFM International LEAP-1B engines, an industry-wide durability problem.

Reuters

Deregistering the aircraft eliminates lease rentals on non-revenue-generating assets, easing SpiceJet’s cash strain but also reducing its fleet size, which could limit capacity recovery once financial conditions improve. The case tests India’s newer creditor-enforcement regime and signals to other distressed carriers the heightened risk of asset loss.

SpiceJet Lessors Seek To Deregister 4 Boeing 737 MAX Jets

SpiceJet’s spokesperson emphasized that the deregistration will not affect current flight schedules because the jets have been out of service for an extended period. The airline added that discussions with the lessor and the engine manufacturer continue to explore a return to service. Legal analysts noted that invoking IDERA is typical when contractual defaults reach a threshold warranting enforcement of proprietary rights, and that deregistration clears the way for the lessor to export the aircraft.

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

Legal experts warned that the loss of four jets could further constrain SpiceJet’s operational flexibility, especially as the airline already operates a fraction of its owned fleet. The increasing frequency of IDERA filings, highlighted by counsel Tushar Kumar, raises concerns about the broader impact on India’s low-cost carrier market.

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

Industry data shows SpiceJet operating roughly a dozen aircraft while more than 40 remain parked, reflecting ongoing cash shortages, delayed pilot salaries and reliance on a government-backed credit scheme that has so far provided INR1.5 billion, with a further INR3.5 billion sought.

Lessors aim to reclaim SpiceJet aircraft due to increasing unpaid rentals

Some sources list Sky High LXXVII Leasing Co. Ltd as an applicant, while others mention only LXXVIII and LXXX. Additionally, reports differ on the proportion of the fleet grounded—one cites “nearly 80 %” while another specifies 42 of 53 aircraft. No definitive timeline for the aircraft’s export or potential re-lease has been disclosed.

Chinese Lessor Moves to Repossess Four SpiceJet Boeing 737-8 Aircraft / aviator.aero

• “The deregistration of these aircraft will eliminate lease rental costs on assets that have remained non-operational for a prolonged period,” — SpiceJet spokesperson

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

• “There is no impact on the airline’s operations, as these aircraft have been out of service for a considerable time.” — SpiceJet spokesperson

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

• “Invocation of the Idera mechanism is ordinarily resorted to when a lessor considers that contractual defaults have reached a stage warranting enforcement of its proprietary rights in the aircraft.” — Tushar Kumar, advocate, Supreme Court of India

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

• “An Idera filing begins the statutory process for cancelling Indian registration and recovering/exporting the aircraft,” — Rohit Jain, managing partner, Singhania & Co.

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft

• “These aircraft have been grounded for a long period due to engine HPT (high-pressure turbine) manufacturing issues,” — SpiceJet spokesperson

Chinese lessor moves DGCA to deregister, repossess four SpiceJet aircraft