Govt Steps in to Check Flight of KFA Lessors

In a damage-control exercise to prevent Indias image from being dented in the international market,the civil aviation ministry is likely to issue a guidance to release all Kingfisher Airlines aircraft parked at various Indian airports to international leasing companies which own them.The move comes in the wake of growing disquiet among major leasing companies over Indias refusal to hand over the aircraft and fears that much-needed aircraft finance would be stopped to Indian airline companies.The civil aviation secretary KN Srivastava is in the process of issuing a letter to all airport operators in 3-4 days,directing airports to release aircraft that have been de-registered by the authorities and are no longer held by Kingfisher.This would happen very soon, Arun Mishra,director general of civil aviation (DGCA) told ET.The ministry decided on this step after a meeting with interested parties and stakeholders,including Airports Authority of India,or AAI,in Delhi about a week back.Kingfisher Airlines ceased operations last year,following defaults in loan repayment to lenders and failure to pay salaries.The airline buckled under in October-November 2011,running out of cash and was forced to suspend operations.The airline could not find investors and DGCA was forced to suspend its licence in October last year.The return and de-registration will also decrease the number of aircraft on Kingfishers air operating permit to 15,with more recoveries in the pipeline.Experts said it will not be easy for Kingfisher to restart operations any time soon.The Vijay Mallya-promoted airline owes Rs 450-500-crore to major airports in India.It has parked nearly 30 out of its 66 aircraft fleet in various airports,out of which,15 have been deregistered.Big leasing firms have been increasingly vocal in their complaints against Indian authorities for not letting them take their assets back.
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