Mumbai: Global leasing companies have hiked lease rentals on their planes in India after they found it difficult to repossess planes following defaults by Kingfisher AirlinesBSE 10.00 %. The higher rental may hit the fleet expansion plans of Indian carriers who typically either directly lease planes or get into sale and leaseback agreements with leasing companies after receiving deliveries of aircraft they have purchased.
"Kingfisher Airlines' collapse unravelled the inherent difficulties of leasing into the Indian aviation market and consequently will drastically increase the cost associated with operating aircraft in an industry where the overhead costs are already extremely high," Paul Thibeau, vice president, communications at the International Lease Finance Corporation, told ET in an interview over email.
06/09/13 Anirban Chowdhury/Economic Times
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"Kingfisher Airlines' collapse unravelled the inherent difficulties of leasing into the Indian aviation market and consequently will drastically increase the cost associated with operating aircraft in an industry where the overhead costs are already extremely high," Paul Thibeau, vice president, communications at the International Lease Finance Corporation, told ET in an interview over email.
06/09/13 Anirban Chowdhury/Economic Times
