Jet Airways (India) Ltd. (JETIN) and rival carriers in the nation face rising aircraft financing costs after Kingfisher Airlines Ltd. defaulted on leases and Indian authorities failed to help recover the planes, DVB (DVB) Bank SE said.
“Risk is perhaps higher than we thought,” Bertrand Grabowski, managing director for aviation and rail at the Frankfurt-based bank, said in an interview in Singapore today. “If someone is willing to do aircraft financing in India, costs will move up,” he said without specifying any rates.
DVB Bank hasn’t been able to place with other carriers the two Airbus SAS A320s it repossessed from Kingfisher as India’s aviation regulator refused to deregister the jets, Grabowski said. The lender suspended all financing to Indian carriers because of the situation, he said.
18/01/13 Kyunghee Park & Sanat Vallikappen/Bloomber.com