Reuters
An Indian court will rehear bankruptcy petitions filed by aircraft lessors against cash-strapped SpiceJet before a new bench, after the airline reached a last-minute settlement with one lessor. The ruling delays proceedings and resets a closely watched test of lessors’ remedies against distressed airlines in India.
Aircraft Demand: Airline Distress & Consolidation
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Kenya’s National Treasury says it aims to finalize a strategic partnership for Kenya Airways by December 2026, seeking to recapitalize the flag carrier and reduce its reliance on government support. The timetable gives potential investors and policymakers a defined horizon for resolving the airline’s financial dependence on the state.
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An Indian court will rehear bankruptcy petitions filed by aircraft lessors against cash-strapped SpiceJet before a new bench, after the airline reached a last-minute settlement with one lessor. The ruling delays proceedings and resets a closely watched test of lessors’ remedies against distressed airlines in India.
Argentina’s Flybondi has reportedly gone 12 consecutive days without operating flights, while an investor dispute and frozen funds over tax debts paralyze operational decision-making. The low-cost carrier is also considering a potential insolvency proceeding, with its website reportedly returning a 504 error.
Peru’s competition watchdog has approved Abra Group’s acquisition of control of SKY Airline following a second-phase review, subject to limits on exclusivity. The transaction brings the Chilean low-cost carrier into the group that includes Avianca, expanding Abra’s position in Latin American aviation.
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Google will acquire deidentified Spirit Airlines data after winning a bankruptcy auction with a $10 million bid. The records include employee emails, Teams messages, code repositories, financial and pricing data, operating and maintenance records, calendars, and disruption history—offering a rare archive of real-world airline decisions and failures.
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An Indian bankruptcy court criticized SpiceJet for reaching a last-minute settlement with one of eight aircraft lessors whose bankruptcy petitions were awaiting rulings. The court said the move wasted judicial time, underscoring continued financial stress at India’s fourth-largest carrier.
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Lufthansa City Airlines is preparing to receive its first A220-300 in November, while airBaltic is reducing its long-term fleet targets and AirAsia plans to return 25 older aircraft to lessors by the end of 2026 before new A220-300 deliveries begin in 2028.
A Hong Kong-based private equity firm has submitted a plan to rescue SriLankan Airlines, potentially opening a new path for the carrier’s ownership, financing and restructuring. The proposal highlights continued investor interest in distressed airline assets and the challenges facing Sri Lanka’s flag carrier.
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