Paris: Aircraft lessor International Lease Finance Corp said on Monday it had successfully removed one of six aircraft stranded in India by a dispute over the suspension of operations at Kingfisher Airlines.
Financiers have warned that failure to resolve the dispute between creditors over the grounded carrier's unpaid bills could starve India of funds needed to develop its aviation industry.
ILFC, a subsidiary of U.S. insurer AIG, said it had been able to remove an Airbus A321 passenger jet following a High Court decision in New Delhi on March 15.
"This first aircraft's departure demonstrates the High Court's pragmatic approach in an environment that is perceived as hostile by many foreign investors," ILFC said in a statement.
Kingfisher, controlled by liquor baron Vijay Mallya, has been halted due to a cash crunch. Lenders are trying to recover $1.4 billion of loans in default, but disagreements over who should take precedence have left jets stranded.
Germany's DVB Bank said in December it had sued India's aviation regulator and Kingfisher to have two planes it financed for the troubled carrier de-registered, a possible first step toward recouping its funds.
The fate of Kingfisher's jets is seen as an important test of an international agreement known as the Cape Town convention, designed to make it more attractive for leasing companies to invest by imposing U.S.-style repossession rights.
Source: http://profit.ndtv.com
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