The IDERA filing and the aircraft in question

The Directorate General of Civil Aviation (DGCA) posted notices that two Dublin-registered special purpose vehicles, Sky High LXXVIII Leasing Co. Ltd and Sky High LXXX Leasing Co. Ltd, are seeking an Irrevocable De-registration and Export Request Authorisation (IDERA) for four narrow-body 737-8 MAXs. Both SPVs belong to ICBCIL Aviation Co. Ltd, a subsidiary of ICBC Financial Leasing Co. Ltd, ultimately controlled by the Industrial and Commercial Bank of China.

IDERA, a Cape Town Convention tool, lets a lessor demand deregistration and export when the lessee defaults on lease payments. The four planes sit in Hyderabad (two), Amritsar (one) and Delhi (one). If the DGCA cancels their Indian registrations, SpiceJet loses any legal right to operate them and the aircraft could be flown out of the country or re-leased elsewhere.

SpiceJet’s technical defence

SpiceJet’s spokesperson says the four jets have been out of service for a long stretch because of a problem with the CFM International LEAP-1B engine’s high-pressure turbine. The airline argues the planes are dead assets: keeping them on the lease books costs money while they cannot fly. By deregistering the aircraft, SpiceJet would stop paying rent on non-operational equipment. The carrier says it is still talking with both the lessor group and the engine maker to fix the fault and eventually return the aircraft to service.

A balance sheet under strain

The repossession request arrives as SpiceJet’s finances crumble. For the first nine months of fiscal year 2026 the airline posted a standalone net loss of ₹1,138.15 crore, up from a ₹266.8 crore loss a year earlier. Revenue from operations fell 14 % to ₹3,271.5 crore for the period ending 31 December 2025.

Operational data mirrors the slide. OAG shows SpiceJet scheduled 1,855 domestic departures in July, 28 % fewer than the same month a year ago. Its share of the Indian domestic market has slipped below 3 %. Of the fleet, only 11 aircraft are airworthy while 42 sit parked.

Growing use of IDERA in India

Legal observers note that IDERA is being used more often in India as financiers grow impatient with airlines that miss lease payments. Once a registration is cancelled, the aircraft can leave Indian territory without the airline’s consent, cutting off the carrier’s ability to use the asset and giving the lessor a clear path to re-lease it abroad.

Counter-argument: payment default versus technical fault

The lessors’ filing rests on the premise that SpiceJet has failed to meet its lease payments. The airline, however, frames the issue as a technical snag that makes the planes unusable, suggesting the default is a consequence rather than a cause.

What to watch next

  • DGCA’s decision:

Takeaway

The IDERA filing by Chinese-linked lessors threatens to strip SpiceJet of four grounded 737-8 MAXs while the airline bleeds cash and market share. How the DGCA rules, and whether SpiceJet can convince the lessors that engine defects, not payment failure, sidelined the planes, will shape the carrier’s immediate fleet outlook and the balance of power between Indian airlines and overseas financiers.