Indian Airline Defaults on Payments to GE

Indian Airline Defaults on Payments to GEThe Bangalore-based airline, Kingfisher has defaulted on payments to GECAS. Vijay Mallya's Kingfisher Airlines leased four airplanes from GE Commercial Aviation Services (GECAS). The US Company filed complaint against Kingfisher before the aviation regulator of India for nonpayments.

Meanwhile, Kingfisher spokesperson declined to comment on the matter. He said that the matter is under judicial preview so the company would make no comment on the matter. However, he hoped that the court would issue ad-interim orders to save the company. GE has also decided to keep quite on the issue. It said in a press release that the company is committed to maintain high confidentiality and would not disclose any detail. However, it has asked the Directorate General of Civil Aviation to cancel the registration of four aircrafts.

DGCA official confirmed the request of GECAS for aircraft possession. Kingfisher airline is facing serious credit crisis like other aviation companies. It has posted a net loss of Rs 483.2 crore for the quarter to September 30 this year which is more than its losses for the whole last year. It has recently decided to co-operate with Jet Airways to cut losses.

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