Court order to return planes may dampen SpiceJet stock surge

New Delhi

THE biggest surge in an airline stock in the world since mid-December faces risks from a fight over planes.

The 63 per cent climb in India's SpiceJet Ltd from a December low, fuelled by its bailout from financial woes, leads the Bloomberg Intelligence Global Airlines Competitive Peers index. The carrier's newest obstacle is a court order last week seeking to return six of its 17 Boeing Co 737 planes to lessors who are owed money, a decision SpiceJet plans to appeal.

While SpiceJet has said that the case won't disrupt flights, its struggle to stay afloat underscores the challenges airlines face in India from rising competition and high jet fuel taxes. The shares are down about 11 per cent in the past month, erasing some of the gains sparked by returning co-founder Ajay Singh's initial five-billion-rupee (S$110.3 million) …