NEW DELHI: In a major setback to Kingfisher Airlines, the Directorate General of Civil Aviation (DGCA) has de-registered three of its aircraft on account of rental payment default. These aircraft will be grounded and not permitted to fly on commercial routes.
The airline had reportedly been erratic in paying its lease rental to GE Commercial Aviation Services (GECAS) for four A-320s. Kingfisher Airlines, however, denied a default and obtained a stay order from the Karnataka High Court to prevent repossession of the four aircraft by the firm in September this year.
Senior DGCA officials confirmed that three aircraft have been struck off the records on Thursday. “Three aircraft have been de-registered and one more is likely to meet the same fate next week,” said a senior civil ministry official on condition of anonymity.
The airlines has over a dozen A-320s flying on domestic routes. With a fleet of 50 aircraft, grounding four of them won’t impact the airlines much. But for Vijay Mallya, the DGCA’s action is no less than a bitter pill. De-registration of the aircraft means the airline will have to ground them with immediate effect. An airline spokesperson said: “This issue is sub judice and it will be inappropriate if I comment on the matter.”
This move comes as a big relief for the GECAS. The company is one of the world’s top aircraft lessors. Rattled by the payment defaults, it registered a complaint with the DGCA, asking for permission to repossess four aircraft leased to the airline. The company spokesperson, however, refused to divulge information: “GE treats its business discussions with high confidentiality and is unable to disclose any details.”
