Air India regrets payment of aircraft lease in UK court – world news

Air India regrets payment of aircraft lease in UK court – world news

Air India has received some exemption from a UK court as it allowed India’s flag bearer time until early January, to pay in the case of arrears of more than US $ 17.6 million, the judge said. Had acknowledged the “widespread emphasis” of financial difficulties. Especially due to grounding of flights during the Kovid-19 lockdown.

Judge Simon Saloko, however, slammed Air India for its “unsatisfactory and discouraging” conduct in relation to the case by not engaging in time with the process.

The hearing took place in the Commercial Courts Division here on Friday, which included the outstanding payments of more than US $ 17.6 million to China Aircraft Leasing Company Limited (CALC) as part of an aircraft lease agreement for rent and maintenance.

The judge said, “Air India is facing financial difficulties along with the rest of the aviation sector. By 11 January 2021, to clear the overdue payment.

However, this extension is conditional on the airline paying the previously committed amount for the month of December, with a total amount of USD 5 million.

Counsel for the global aircraft leasing company CALC demanded immediate payment and argued that Air India was a state-owned airline that could always seek funds from the Indian government and only in cases for its client Wants to delay, which is waiting almost a year for payment.

On the other hand, Air India argued that it does not dispute that the claimant is entitled to payment for the leased aircraft, but as a result of severe constraints on the airline industry, most of its aircraft remain at the ground level. The airline claimed that negotiations with CALC were unproductive when it struck down payment plans with fares and other leases.

It urged the court for time until 29 January for payments to avoid disruptions to its UK and Europe operations, particularly over the Christmas and New Year holiday periods, which “hampered its ability to pay further” “Will go to give.

The judge struck a compromise and asked Air India to withdraw the dues by 11 January.

The Indian state-owned carrier has been searching for a buyer for some time as the government wants to divest its 100 percent stake in Air India and budget carrier AI Express.

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