New Delhi/Bangalore: With Vijay Mallya and other directors of the now defunct Kingfisher Airlines (KFA) running the risk of being declared wilful defaulters by various banks for failing to return loans of over ?7,000 crore, the spotlight has once again turned on the impact the airline going bust will have on the domestic aviation sector.
Analysts say that due to some actions by KFA and subsequently by vendors such as the Airports Authority of India to which Kingfisher still owes a lot of money, global aircraft leasing companies are now reluctant to do business with India.
Kapil Kaul, Chief Executive Officer, Centre for Asia-Pacific Aviation, points out that the challenges faced by lessors to repossess Kingfisher’s aircraft continue to hurt the domestic industry.
“Lessors continue to see serious market risks in India,” Kapil told BusinessLine.
Adds Vasuki Prasad, aviation analyst with Flyingengineer, “Leasing companies are wary of India after their bitter experiences with Kingfisher and Paramount. When operating for an Indian airline, the jurisdiction in India does not allow repossession of aircraft, as has been the case with Paramount and Kingfisher.”
18/08/14 Ashwini Phadnis/K Giriprakash
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Analysts say that due to some actions by KFA and subsequently by vendors such as the Airports Authority of India to which Kingfisher still owes a lot of money, global aircraft leasing companies are now reluctant to do business with India.
Kapil Kaul, Chief Executive Officer, Centre for Asia-Pacific Aviation, points out that the challenges faced by lessors to repossess Kingfisher’s aircraft continue to hurt the domestic industry.
“Lessors continue to see serious market risks in India,” Kapil told BusinessLine.
Adds Vasuki Prasad, aviation analyst with Flyingengineer, “Leasing companies are wary of India after their bitter experiences with Kingfisher and Paramount. When operating for an Indian airline, the jurisdiction in India does not allow repossession of aircraft, as has been the case with Paramount and Kingfisher.”
18/08/14 Ashwini Phadnis/K Giriprakash
