Irish lessors seek deregistration of four SpiceJet Boeing 737 MAX jets

India’s aviation regulator posted public notices seeking deregistration of four SpiceJet Boeing 737-8 MAX jets leased by two Ireland-based lessors, a step that could move the aircraft toward repossession and further strain a carrier already operating with a thin fleet. The filings matter beyond paperwork: if the jets come off SpiceJet’s registry, the airline could lose capacity on narrow-body routes that matter most to its network and cash flow.

The notices covered aircraft bearing the registrations VT-MXA, VT-MXB, VT-MXC and VT-MXD, with the same plane identified in some reports as VT-MAX. The lessors were named as Dublin-based Sky High LXXVIII Leasing Co. Ltd. and Sky High LXXX Leasing Co. Ltd., both special-purpose vehicles owned by ICBCIL Aviation Co., the leasing arm tied to the Industrial and Commercial Bank of China. The requests were dated July 9, 2026, SpiceJet was notified on July 10, and the notices were made public by the Directorate General of Civil Aviation on July 13.

The aircraft have been grounded for a long period because of engine high-pressure turbine manufacturing issues, and reports said they were parked in Hyderabad, Amritsar and Delhi. SpiceJet said the jets have been out of service for a long time and argued that deregistration would remove lease rental costs without affecting current operations. That claim reflects the immediate reality inside the airline’s fleet: recent figures show just 11 aircraft in operation and 42 parked, while other June-quarter reporting put its operational fleet at 21 aircraft out of 56.

The dispute now tests India’s newer repossession framework, including the Protection of Interests in Aircraft Objects Act, 2025 and the IDERA process designed to make it easier for lessors to deregister and export aircraft when airlines default. For foreign owners, the case is a signal about how quickly they can recover aircraft when a carrier falls behind on obligations. For SpiceJet, it adds pressure to preserve fleet availability at a time when operational slack is scarce.

The airline’s financial stress gives the filings sharper edge. Recent reporting showed total income fell sharply between June 2024 and June 2025 and the company swung back to a loss, while SpiceJet shares have also fallen sharply this year. If the deregistration proceeds, the carrier will face a narrower set of choices: negotiate with the lessors, replace the jets, or absorb the hit to capacity and confidence.