India appeals the finance and leasing companies to hold
The sources of government have revealed that now it will be easy for firms like finance and leasing to reclaim the planes utilized by kingfisher Airlines. After a high voltage drama and complaints after complaints the government came up with a tough decision. once known to be as India’s second largest airlines is into great danger as its planes have not flown for five months. The finance and leasing firms have already warned that they could stop funding the aviation industry if India does not take a tough stand against complexity of process. DV bank a German plane financer has dragged the aviation regulator and kingfisher into court for allowing them to fly on a different track. As per the sources information Kingfisher Airlines owes $2.5 Billion to the several banks, airports and others and in addition to that the airlines is reported to have 13 planes on its fleet which are on lease already. But the number of leased planes is not been confirmed by the airlines so as if now.
Today the government of India reacted by saying that the civil aviation ministry had given a thought to it and came to the conclusion that they will try to remove all the constraints for the leasing and finance companies. The government went on saying that the efforts are being made to take back the planes from the airlines which are unable to pay. The conflicts like to recover their dues, creditors and the tax authorities are desperate to take the possession of all the assets of kingfisher. During the last year tax authorities undertook two planes having kingfishes colors parked in the airport of Mumbai. In the beginning of the New Year International lease finance corp. sent their team to take the kingfisher planes into their custody as they did not pay their due bills. An official from ILFC said that the planes were not operational because of the excessive administrational formalities and there were several other problems related to the arrangements to fly them. The other official from DAV said that they are expecting a major change in the government attitude towards this matter.
Indian airlines will be in a great need for planes because of the aviation boom and the demand created by the increasing number of passengers itself people and the fact of the matter is that there will be a huge role of leasing and finance firms which would fund the aircrafts. The aviation regulator is anticipating a settlement between kingfisher, DVB and the tax authorities of India
During the other episode of possession planes, one of India’s well know carrier JET AIRWAYS has taken two planes which were operated by Kingfisher. The meeting on 26th march is expected to open up the ways for government, Airlines and the authorities.