After four planes, Irish firm asks DGCA to de-register 2 more Boeing 737s leased to SpiceJet – Times of India
NEW DELHI: Lessors of two more aircraft currently with SpiceJet have approached the Directorate General of Civil Aviation (DGCA) to de-register their planes rented to the airline. These latest requests come after similar pleas for de-registering four Boeing 737s leased to the low cost carrier in the last one month which were then re-possessed by the lessors.
All these requests have been made under the provisions of Irrevocable De-registration and Export Request Authorisations (IDERA) that is a part of the Cape Town Convention and provides for the owner of an aircraft to get an aircraft de-registered from the name of a third party in cases like default of lease rentals. The regulator has to decide on the lessors’ IDERA request within five days. “The DGCA has to check with various authorities if there are any tax dues on the aircraft within the given time frame. The idea is to ensure aircraft lessors don’t face issues in repossessing planes from defaulting (on lease rentals)/defunct airlines,” say officials.
The latest requests were filed on August 25 by an Ireland-based lessor for two B737s, VT-SPU and VT-SGQ. Comments have been sought from the airline on the latest requests and are awaited. About the earlier requests for de-registering four B737s, the airline had essentially said it is phasing out the old fuel-inefficient planes and will add the frugal B737 MAX to its fleet.
SpiceJet promoter Ajay Singh is scouting for funds from external parties, including airlines, through stake sale to the carrier afloat. The shareholders of SpiceJet, which is a listed company, have approved fundraising of Rs 1,500 to Rs 2,000 crore, and some of the amounts have already been raised, Singh had recently said.
The DGCA has since last month limited the cash-strapped airline’s operations to 50% of its schedule and will allow an increase in flights only it can prove to have “sufficient, technical support and financial resource to safely and efficiently undertake such enhanced capacity.” The airline had earlier this month said it was in “in discussions with various investors (including a Middle East carrier and an Indian conglomerate) to secure sustainable financing.”
Earlier this week, Ajay Singh had said: “We are doing to raise resources by way of the government-supported scheme ECLGS, getting new aircraft from Boeing and therefore through the SLB (sale and lease back) process… exploring all options for fund raising… would do everything to ensure SpiceJet remains a strong and vibrant player.” The airline, which currently has 60 operational planes, hopes to add at least seven more by the year-end.
All these requests have been made under the provisions of Irrevocable De-registration and Export Request Authorisations (IDERA) that is a part of the Cape Town Convention and provides for the owner of an aircraft to get an aircraft de-registered from the name of a third party in cases like default of lease rentals. The regulator has to decide on the lessors’ IDERA request within five days. “The DGCA has to check with various authorities if there are any tax dues on the aircraft within the given time frame. The idea is to ensure aircraft lessors don’t face issues in repossessing planes from defaulting (on lease rentals)/defunct airlines,” say officials.
The latest requests were filed on August 25 by an Ireland-based lessor for two B737s, VT-SPU and VT-SGQ. Comments have been sought from the airline on the latest requests and are awaited. About the earlier requests for de-registering four B737s, the airline had essentially said it is phasing out the old fuel-inefficient planes and will add the frugal B737 MAX to its fleet.
SpiceJet promoter Ajay Singh is scouting for funds from external parties, including airlines, through stake sale to the carrier afloat. The shareholders of SpiceJet, which is a listed company, have approved fundraising of Rs 1,500 to Rs 2,000 crore, and some of the amounts have already been raised, Singh had recently said.
The DGCA has since last month limited the cash-strapped airline’s operations to 50% of its schedule and will allow an increase in flights only it can prove to have “sufficient, technical support and financial resource to safely and efficiently undertake such enhanced capacity.” The airline had earlier this month said it was in “in discussions with various investors (including a Middle East carrier and an Indian conglomerate) to secure sustainable financing.”
Earlier this week, Ajay Singh had said: “We are doing to raise resources by way of the government-supported scheme ECLGS, getting new aircraft from Boeing and therefore through the SLB (sale and lease back) process… exploring all options for fund raising… would do everything to ensure SpiceJet remains a strong and vibrant player.” The airline, which currently has 60 operational planes, hopes to add at least seven more by the year-end.
For all the latest business News Click Here
Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
