Court impounds second ‘Windjet’ Airbus in Malta

Mr. Justice Ray Pace, presiding over the First Hall of the Civil Courts, threw out two judicial applications filed by two separate Irish-based aircraft leasing companies from taking repossession of their airplanes, currently impounded in Malta by order of Sicilian airport operator 'Catania Aeroporto S.p.A'.

The two Airbus A320-211 are the remaining airplanes sporting Windjet tails, which have been sitting at Malta International Airport since the airline went bankrupt last August. Another five aircraft, which were held at Lufthansa Technik hangars at Gudja, which were also leased to Windjet by third parties have since left Malta, after their owners deposited financial guarantees with the Maltese Courts.

Lawyer Nikolai Vella Falzon who appeared for the legal owners of the planes  -  Eden-Irish Aircraft Leasing and ALS Ireish Leasing - called on the Maltese Courts to release the airplanes, and countered the Sicilian airport's warrant of seizure with the threat of holding it responsible for mounting financial damages being incurred.

In obtaining the warrant of seizure, Catania Aeroporti S.p.A invoked the 1995 Capetown Convention, to qualify its right to holding a 'security interest' over the aircraft for the monies owed to it by the defunct airline.  Malta ratified the Convention in 2011.

The Irish company argued that it had just landed its aircraft in Malta as part of a  repossession process due to Windjet's default on its payment obligations, when the Sicilian airport obtained the seizure order.

Eden-Irish Aircraft Leasing insisted that it has nothing to do with the debts owed by Windjet to Catania Aeroporti S.p.A, and there was no way it could have ever known about its client's debts with third parties.

The company pointed out that the Sicilian airport operator had managed to obtain a provisional warrant of seizure against Windjet, on condition that it notifies other parties within an established time-frame.

According to Eden-Irish and ALS Irish Leasing, the airport did not notify anybody and proceeded with implementing the seizure, impounding its Airbus A320 in Malta over a claim for €2.3 million in pending debts for airport services costs.

Lawyer Joseph J. Vella, appearing for Catania Aeroporti S.p.A quoted a Canadian Supreme Court judgement which ruled that "it is difficult to endorse the indignation of the legal titleholders with respect to detention of their aircraft until payment is made for debts due to the service providers. They are sophisticated corporate players well versed in the industry in which they have chosen to invest. The detention remedies do not affect their ultimate title.

Investors who have done their due diligence will recognise that detention remedies have deep roots in the transport business."

When quoting the judgment, Catania Aeroporti S.p.A reminded the Court that in the wake of Malta's developing Aviation Register, many eyes were set on the Maltese Courts handling of such a case.

In passing judgment, Mr. Justice Raymond Pace ruled that there was no reason for the Courts to lift the warrant of seizure or to forfeit Catania Aeroporti S.p.A's interest in protecting its legal and financial interests. It ruled that the warrant of seizure remains in place.

Lawsuit

Last month, Windjet filed a suit for €162.5 million in damages from Alitalia, following the collapse of talks to save the bankrupt Sicilian airline this summer.

The suit was filed just days after Italian tax police (Guardia di Finanza) searched Alitalia and Windjet offices in a probe into the failed talks between the two.

Catania prosecutors have meanwhile opened an investigation against "person or persons unknown" and no one has so far been formally placed under investigation.

In October, Italy's civil aviation agency said it had received no requests by anyone wanting to resume Windjet's business despite reports that it was being given a new life,

The Italian National Civil Aviation Authority said it had not received any request for a new licence that would permit Windjet to take flight, and if such a request was received, the agency said it would be bound by European regulations to carefully confirm the new company's "financial, technical and operational sustainability".

However, Windjet owner Nino Santos told newspaper La Sicilia that he had a provisional licence to resurrect the low-cost carrier under a new name, Aero Sicilian, while retaining the W brand on its planes.

Flights were provisionally scheduled to resume this week, but so far the airline remained with its wings clipped.

 Windjet declared bankruptcy in August, stranding thousands of passengers and leaving many more holding worthless tickets.

A Sicilian politician recently warned that although a new carrier might save Windjet jobs, it should not expect financial support from the government.

"The Windjet story must be resolved, but not by asking Sicilians to put their hands in their pockets," warned Simona Vicari, provincial coordinator for former premier Silvio Berlusconi's party in Palermo.

Angry Windjet workers have been fighting for their jobs since the carrier collapsed under the weight of debt reaching about €140 million.

Source:  http://www.maltatoday.com.mt