The Indian low-cost airline Spicejet and de Havilland Aircraft of Canada (DHC) have been quarreling for some time. A few years ago, the Canadian aircraft manufacturer proudly announced a bulk order for 25 Dash 8-400s with increased seating capacity. After machine number five, payments stalled, DHC went to court and prevailed.

The DHC Dash 8-400 is the backbone of Spicejet's regional fleet, as the sub-fleet consists of a total of 32 units. Only five of them are in the special "low-cost variant" that DHC and the airline proudly presented in 2017. However, after unit number five was shipped, payments stalled and Spicejet refused to make deposits for 15 more Dash 8-400s.

De Havilland Aircraft of Canada went to court and claimed a total of $ 42,95 million. The low-cost airline was accused of breach of contract, because a total of 2017 machines were ordered in September 25. Spicejet also secured the option of 25 more copies at the time. It is now considered extremely unlikely that the order can still be delivered. Accordingly, DHC wanted to have the sum sued as compensation.

DHC wins - Spicejet announces appointment

As is often the case in aviation, the United Kingdom has been agreed as the place of jurisdiction for disputes. As a result, De Havilland Aircraft of Canada filed a $ 2020 million lawsuit against Spicejet in March 42,95. Due to the corona pandemic, the proceedings were delayed, but the High Court has now ruled in favor of the manufacturer. Spicejet contested that the order is void as DHC was unable to meet the schedule.

The court did not see it that way, however, because the low-cost airline was sentenced to pay $ 42,95 million. The order is not saved, but the High Court awarded the Canadian aircraft manufacturer this amount as compensation. Put simply: Spicejet has to pay DHC, but does not get any machines for it. This hits the carrier at an extremely inopportune time due to the corona pandemic.

The judgment is not yet final, however, as Spicejet has already announced that it will have to appeal within the deadline provided. So it will be some time before DHC will possibly hold a legally valid title in its hands. It could also be that the next instance will judge the matter differently. Therefore, the further development remains to be seen. In the absence of new orders, production of the Dash 8-400 temporarily suspended.