Moneycontrol
Mar 28, 2013 09:51 AM IST | Source: CNBC-TV18

Lessor trouble mounts for Kingfisher Airlines

Kingfisher Airlines is not just bleeding cash, it's bleeding aircraft as well. DVB, an international aviation lessor bank has petitioned for urgent release of its aircraft leased to the airline.


Kingfisher Airlines is not just bleeding cash, it's bleeding aircraft as well. DVB, an international aviation lessor bank has petitioned for urgent release of its aircraft leased to the airline. Meanwhile, International Lease Finance Corporation (ILFC), another international lessor has already repossessed one of its aircraft. It has also said that it will look at legal recourse to recover its dues from the debt ridden company reports CNBC-TV18’s Sunanda Jayaseelan.


ILFC was successful in recovering the first aircraft out of the six which have been leased to Kingfisher Airlines. It is not going to be content with just that. ILFC has said that they will look at legal proceedings not just against Kingfisher Airlines, but also against its parent company United Breweries Holdings (UBHL). The legal recourse will be taken to recover penalties because Kingfisher Airlines has stopped paying dues.


Earlier on Tuesday, the Directorate General of Civil Aviation (DGCA) said that he deregistered 15 aircrafts out of the 40 aircrafts that Kingfisher Airlines has at this point. The lessors of the other remaining 25 aircrafts have not made any claims yet.

However, DVB just yesterday made a petition to recover its aircraft. ILFC is hoping to be able to recover the balance of the aircraft within the next few days or atleast within the next few weeks.

Sections
Follow us on
Available On