Aviation leasing watchdog issues warning to India over plane repossessions
The Hindu
A global aviation leasing watchdog has put India on a watchlist with a negative outlook saying it failed to comply with international aircraft repossession norms after airline Go First was granted bankruptcy protection
A global aviation leasing watchdog has put India on a watchlist with a negative outlook saying it failed to comply with international aircraft repossession norms after airline Go First was granted bankruptcy protection.
The move from the Aviation Working Group (AWG), a U.K.-based entity that monitors leasing and financing laws on behalf of planemakers and lessors, could raise leasing costs for Indian airlines and further jolt lessors' confidence in the world's third-largest domestic aviation market.
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The inability to repossess Go First's planes in a timely manner comes as Indian air travel is booming and hundreds of new jets have been ordered by local carriers, who regularly turn to lessors to help finance plane purchases.
Go Airlines (India) Ltd filed for bankruptcy protection last week, blaming "faulty" Pratt & Whitney (P&W) engines for the grounding of about half its 54 Airbus A320neos. P&W, part of Raytheon Technologies, says the airline's claims are without evidence.
In granting protection, the Indian tribunal ordered a freeze on Go First's assets even though some lessors had already terminated their leases with the airline and placed requests with the aviation regulator to repossess more than 40 planes.
Failure to process deregistration applications for aircraft with leases terminated before the freeze was imposed, "results in a negative outlook", AWG said in its watchlist notice.
Flight AI177 will depart Bengaluru at 1.05 p.m. and arrive at London Gatwick at 7.05 p.m. (local time). From London Gatwick, flight AI178 will depart at 8.35 p.m. (local time) and arrive in Bengaluru at 10.50 a.m. (next day arrival). From Bengaluru, the flight will operate on Mondays, Wednesdays, Thursdays, Fridays and Sundays.