26 July 2024
SMBC Aviation Capital, the world's second-largest aircraft lessor, pointed out that National Company Law Tribunal's (NCLAT) decision to block leasing firms from reclaiming planes will create ripples in the markets and will also create a confidence crisis. It has also called ‘India a risky jurisdiction for aircraft leasing’.
Apart from , other aircraft leasing firms, such as Jackson Square Aviation and Bank of China Aviation, have also raised the alarm after a tribunal gave Go Airlines (India) Ltd bankruptcy protection to allow it to revive, and at the same time, barred lessors from reclaiming their planes.
India, which is the third-biggest aviation market, saw a surge in air travel and jet orders in recent years, but the market lost some of its luster with the failures of Kingfisher Airlines in 2012 and Jet Airways in 2019.
"Lessors and international aircraft owners see India as a risky jurisdiction for aircraft leasing," after the failures of Jet and Kingfisher, SMBC told the tribunal ahead of a hearing on Friday where it seeks to quash Go First's bankruptcy protection.
"The admission of the petition (seeking protection) will further shake confidence of the international aviation industry," it added in a filing to the tribunal that has not been made public but was reviewed by Reuters.
