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ILFC admits to facing problems in exporting Kingfisher aircraft

Last Updated 20 August 2013, 17:56 IST

International Lease Finance Corp (ILFC) has admitted that it is facing problems in disposing off the remaining four aircraft which it had leased out to debt-ridden Kingfisher Airlines which had ceased operations last year.

The leasing firm had leased six aircraft to Vijay Mallya’s airline at the time of the latter closing operations.

“We have been successful in deregistering all six aircraft and exporting two of the aircraft out of India,” US-based ILFC said in a filing to the US Securities Exchange Commission, noting that “bureaucratic and regulatory hurdles” have been posing difficulties in exporting the remaining four aircraft which have been removed from Kingfisher’s possession.

ILFC noted that tecent challenges in the global economy, including uncertainties related to the Euro zone, with the most recent economic crisis in Cyprus, political uncertainty in the Middle East, and sustained higher fuel prices, have negatively impacted many airlines' profitability, cash flows and liquidity. Kingfisher has been keen to revive services, though aviation regulator DGCA has been sceptical about its ability to come back into profits.

ILFC said that as of March 31, 2012, it had pending minimum lease payments aggregating $25.9 million from its airlines customers, of which Kingfisher alone accounted for $13.4 million.

The airline posted net losses of Rs 1,157 crore in the three months ended June 30, 2013 while its accumulated losses touched Rs 16,023 crore at the end of March this year. Its net worth as on March 31, 2013 stood at minus Rs 1,292 crore, while lenders recalled loans of Rs 6,203 crore in April this year.

Besies Kingfisher, ILFC has leased aircraft to prominent carriers like Emraer, AeroMexico, Air France, American Airlines, China Southern Airlines and Emirates.

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(Published 20 August 2013, 17:56 IST)

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