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De Havilland sues SpiceJet for unpaid orders

Toronto, Canada - Canadian turboprop planemaker De Havilland is suing Indian Low-cost carrier SpiceJet for an unpaid amount of USD42.9 million.

The conflict arises from an order agreement signed with the Indian operator for 25 Dash 8-400 aircraft. De Havilland claims that SpiceJet did not yet pay for 20 Dash 8-400.

As of January 31, 2020, According De Havilland had 47 Dash 8-400s in its backlog and SpiceJet is the biggest customer, with firm orders for a further 19, on top of 32 it already operates.

However, the airline has failed to take delivery of the 19 aircraft and has defaulted on several payments, the claim alleges, adding that only USD7 million in down payments were made on the 19 turboprops.

De Havilland has now terminated the contracts and insists it is entitled to sell or lease the aircraft to other operators. It also aims to recover “liquidated damages” of USD2.5 million per aircraft, plus interest.

De Havilland Aircraft of Canada Limited confirms that it filed a lawsuit on February 14, 2020, against SpiceJet before the High Court of Justice of England and Wales in relation to a purchase agreement for 25 aircraft in order to protect and enforce De Havilland Canada’s rights. As the matter is before the court, we will offer no further comment at this time,

De Havilland said.

SpiceJet denies any claims of DHC which are completely misplaced and without any default of SpiceJet. SpiceJet has already taken delivery of five aircraft in accordance with the purchase agreement, and the delivery schedule of future aircraft was kept in abeyance/deferred, and therefore it does not warrant any claim. SpiceJet will vehemently defend its stand. As the matter is now sub-judice we would not like to comment further,

SpiceJet said.

via ch-aviation