Kingfisher may have to return leased aircraft

New Delhi: The Karnataka HC has rejected a petition by Kingfisher Airlines to restrain the US aircraft leasing company GE Commercial Aviation Services (GECAS) from taking any step to deregister and repossess aircraft leased to the private airline. Following the court order, Kingfisher will now have to return the fourth A 320 aircraft to GECAS.
Kingfisher had earlier surrendered three leased aircraft to GECAS after it defaulted on lease payments, according to a person familiar with the matter.
“The fear expressed by KAL (Kingfisher) as to the collapse of its business if the reliefs claimed in the application were not granted, were obviously ill-founded as it has emerged unscathed till date,” the court order said.
GECAS, one of the world’s biggest aircraft lessors, had issued a notice to Kingfisher last September and rounded the four jets, alleging delay in payment of lease rentals and maintenance reserves.
“We have already returned three aircraft with the permission of the hon’ble court and the fourth aircraft is under maintenance prior to return. GECAS also has in excess of $8 million cash in their possession from Kingfisher Airlines. We have recourse to appeal, if we so choose,” a Kingfisher Airlines spokesperson said.
According to the court order, Kingfisher has unconditionally handed over three aircraft to GECAS and the latter has acknowledged it before the court. The lone aircraft — MSN 2029 — that is yet to be redelivered is grounded as its engines are with Pratt and Whitney, whose claim towards maintenance charges is a point of dispute between the parties.
26/01/09 Economic Times

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Categories: Foreign Jan 2009, Kingfisher Jan 2009