Legal strains in KFA jet lease row

Indian airports have claimed international law must take a back seat in local courts in a row with foreign aircraft leasing firms over the future of grounded Kingfisher Airlines (KFA) jets, according to government minutes.

The stance taken by Mumbai and Delhi airports could further complicate the leasing firms' attempts to recover jets supplied to Kingfisher Airlines  after it halted flights in October.
That in turn could affect leasing firms' willingness to deal with Indian airlines in future, aviation analysts said.

Experts say lessors now account for about 40 per cent of the modern jetliner fleet.
An international treaty aimed at making it attractive for leasing firms to invest offers lessors similar rights to repossess unpaid jets as in the United States.

However, efforts by foreign lessors to repossess over a dozen Airbus jets parked at airports around India have been hampered by disputes over competing claims and confusion over the power of international agreements to trump local courts.

Both lessors and airports are owed money by Kingfisher Airlines, along with staff, tax authorities and other creditors. Lessors say the jets do not belong to Kingfisher and cannot be touched.