India Daily: Airline Leasing Watchdog Cites Country’s Repossession Compliance Failure
Photo Credit: Go First was granted bankruptcy protection last week. Praveen Thirumurugan/Unsplash https://unsplash.com/photos/Tr04gFx1kNc Go First Airlines in the apron / Praveen Thirumurugan
Skift Take
While a surge in air traffic in the world’s third-largest aviation market led to record jet orders, Go First's bankruptcy made lessors apprehensive about India.
Global aviation leasing watchdog Aviation Working Group — that monitors leasing and financing laws on behalf of planemakers and lessors — has placed India on a watchlist with a negative outlook. Citing India's failure to comply with international aircraft repossession norms after cash-strapped airline Go First was granted bankruptcy protection, the UK-based entity’s outlook falls under the Cape Town Convention, an international treaty on plane repossessions. India's score has been reduced to 3 from 3.5 earlier. The move could translate into higher leasing costs for other Indian carriers. India’s inability to process deregistration applications for aircraft, whose leases got terminated before a freeze was imposed, resulted in a negative outlook, the watchdog said in a notice. Go First’s lessors include SMBC Aviation Capital, CDB Aviation’s GY Aviation Leasing, Jackson Square Aviation and Bank of China Aviation. The inability to repossess Go First’s planes in a timely m
