DVB Aviation sues Kingfisher Airlines for default on aircraft rentals

Kingfisher Airlines has landed in fresh trouble with Singapore based DVB Aviation Finance Asia Ltd , a subsidiary of Germany’s DVB Bank, suing the airline in the British courts for defaulting to the payment of aircraft rentals. The Singapore based company had leased two Airbus 320 aircraft to Kingfisher Airlines in 2006.
The suit was filed on 16th July and will be heard by the Queen’s Bench division’s commercial court. A source from DVB Aviation, who did not want to be named, said the suit has been filed after the airline failed to pay dues for the last three months. These payments are made on monthly basis. “There is a grace period given for seven to eight days but in this case dues have been pending for the last three months.” The official spokesman of DVB Aviation refused to comment. An e-mail query to KFA’s spokesperson did not elicit any response.
ET Now, your newspaper’s business channel, broke the story on Wednesday afternoon.
The airline’s scrip closed flat at Rs 49.75 on Wednesday.
The DVB Aviation official said the aircraft are still deployed with Kingfisher Airlines and they have not yet asked the airline to return the aircraft.
21/07/10 Sameer Hashmi/Economic Times

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Categories: Foreign Jul 2010, Kingfisher Jul 2010