Payment default to BAE may land MDLR Airlines in trouble

New Delhi: Delhi-based MDLR Airlines could be in trouble. British Aerospace Systems (BAE), the lessor for MDLR’s entire three-aircraft fleet, has sent the Directorate General of Civil Aviation (DGCA) a notice for de-registration of these machines over non-payment of the lease amount.
BEA Systems India spokesperson Guy Douglas told ET: “We have served a default notice on MDLR Airlines due to non-payment of aircraft lease amount for many months. We are forced to take such a drastic step as the airline has not made any payment on the three aircraft leased by us.”
MDLR COO Koustav M Dhar admitted that they had defaulted on the monthly lease payments to the British company.
MDLR has been facing problem over the non-functioning of its fleet and is currently not operating its entire three-aircraft fleet. Following irregular operations and frequent flight cancellations, many employees, including COO UK Bose, has quit the company.DGCA has been briefed over the matter and is awaiting a formal notice on the issue.
23/10/08 Chanchal Pal Chauhan/Economic Times

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Categories: Foreign Oct 2008, MDLR Oct 2008