Sunday, 5 August 2012

Kingfisher dues: Leasing firm wants planes back, but AAI doesn’t want to lose security


New Delhi, Aug. 4: 
A tussle is on between theAirports Authority of India (AAI) and anaircraft leasing firm, which wants to take back three ATRaircraft (small turboprop planes) that were being operated by KingfisherAirlines.
The leasing company has written to AAI seeking permission to take back the threeaircraft parked in Chennaiairport, as Kingfisher has not been able to meet its lease payments.
AAI has told the leasing company that Kingfisher owed it also over Rs 260 crore. Allowing the leasing company to take theseaircraft would reduce AAI’s chances of recovering its dues from the cash-strapped private sectorairline. At present, Kingfisher is being allowed to operate its flights from AAIairports only after it pays in advance for using the various facilities, such as parking and navigation charges, sources said.
"We are seeking a legal opinion on how to move forward," a senior AAI official told Business Line.
This is not the first time that Kingfisheraircraft are sought to be repossessed. In March, a law firm wrote to the authorities seeking deregistration and return of five ATRaircraft.
The decision to repossessaircraft has seen Kingfisher curtail the number of its daily flight drastically. It now operates about 100 flights daily, down from over 400 at the beginning of the year. It has completely withdrawn from the international market. Kingfisher, which had 63aircraft earlier, now has 13 operational.
http://www.thehindubusinessline.com/industry-and-economy/logistics/article3727774.ece?homepage=true

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