Dublin: India faces growing pressure over financial uncertainty at budget carrier SpiceJet after leasing company BOC Aviation demanded the return of three leased aircraft, in what is seen as a test of global rules on aircraft investments.
The leasing arm of Bank of China warned in an interview that India's fast-growing airline industry could struggle to attract funds unless India upholds a pact designed to protect the owners of leased jets, widely used across the world.
"SpiceJet is a very frustrating situation," Chief Executive Robert Martin told Reuters.
"Obviously when we lease planes we like people to pay us. And if they don't pay us, then generally the way an operating lessor reacts is by moving its planes to somewhere else in the world."
BOC Aviation said it had asked for three Boeing 737s to removed from the Indian register, a step towards repossession.
The Singapore firm is among half a dozen lessors with exposure to SpiceJet, which is trying to finalise a new shareholder structure and cash lifeline.
23/01/15 Reuters/Business Standard
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The leasing arm of Bank of China warned in an interview that India's fast-growing airline industry could struggle to attract funds unless India upholds a pact designed to protect the owners of leased jets, widely used across the world.
"SpiceJet is a very frustrating situation," Chief Executive Robert Martin told Reuters.
"Obviously when we lease planes we like people to pay us. And if they don't pay us, then generally the way an operating lessor reacts is by moving its planes to somewhere else in the world."
BOC Aviation said it had asked for three Boeing 737s to removed from the Indian register, a step towards repossession.
The Singapore firm is among half a dozen lessors with exposure to SpiceJet, which is trying to finalise a new shareholder structure and cash lifeline.
23/01/15 Reuters/Business Standard
