India to provide for the finance firms, Aid in repossessing Kingfisher planes: A report

NEW DELHI: India is planning to make leasing and financing firm to reclaim the planes employed by Kingfisher Airlines a less tedious issue, reported two government officials, after various complaints that India was causing difficulties the process. Debt-struck and cash-deprived Kingfisher, at one time occupied the position of second-largest carrier of the country by share market, is now not into action for almost five months. India do not have the required funds to support the growth in aviation industry if the reclamation of the planes is doesn’t simplify, as per the warnings issued by finance and leasing companies. The aviation controller and Kingfisher have been sued by the Germany plane financier DVB Bank SE under the pretext that the two Kingfisher airplanes financed by it have been deregistered, given them the permission to be in the air elsewhere.

Kingfisher is under the huge debt of $2.5 billion that has to be paid to airports, banks and others. As per the estimate by the Asia Pacific Aviation consultancy Centre, there are reports of leasing 13 planes in the fleet. The planes that have been leased, however, could not instantly be deep-rooted with Kingfisher.

The sources from government reported on Tuesday that the ministry of civil aviation took a decision in favor of leasing companies which are putting in hard work to take planes back from the airlines, which had failed to pay, as per the international standards .The obstacles encompass the tax authorities that is overruling, different banks and various creditors, which in a desperate attempt to recover their dues, have been trying take ownership of any property remotely associated with Kingfisher. In the year 2012, tax authorities of India were able to seize two of the planes that belonged to Kingfisher that had been parked at Mumbai airport, despite the fact that the planes were let out. Minimizing bureaucracy would prove to be a great help for leasing companies.

International Lease Finance Corp (ILFC) that is US based, that stands high among the largest leasing firm of the world made a team that could reclaim Kingfisher planes on behalf of unpaid bills. Henri Courpron, Chief Executive from ILFC told Reuters that the planes remained trapped by various hurdles before they could fly and administrative problems.

Indian airlines require 1,043 new travelers and the cost of freighter aircraft that cost $145 billion at the end of 2030 to handle the rising demand, said Airbus last year. These planes will be funded by financial companies and leasing firms. Civil Aviation India’s Director General of said that he expected a cordial settlement with tax authorities, DVB and Kingfisher that took control of both the Kingfisher planes during a bid.  The next meeting related to the same is to be held on 26 March.

Director General Arun Mishra told Reuters “We are always willing to help the leasing companies. We are committed to a solution”.

Pin It

Leave a Reply

Your email address will not be published. Required fields are marked *