Air India ordered by court to pay millions in lessor fees
Air India has been ordered to pay millions to one of its aircraft lessors for non-payment of lease fees on five planes.
The UK high court found in favour of claimant China Aircraft Leasing Co and the flag carrier must pay $17.6 million.
However, Judge Simon Salzedo gave the airline extra time to pay it off, due to the Covid-19 pandemic.
Air India has until 11 January to settle the arrears if it pays an initial $5 million this month.
The judge acknowledged the difficulties facing the aviation industry but slammed Air India for its ‘unsatisfactory and discourteous’ conduct.
"I accept the broad thrust of Air India’s submission of the financial difficulties it has been facing along with the rest of the aviation sector and also note that it has been making some payments to the lessors," the judge said.
The lessor argued Air India has the funds to pay its dues as it is owned by the Indian government.
"Air India is a government-owned entity and the idea it not have enough money to meet this is simply fanciful. The government of India can always have enough money to fund Air India," said Arshad Ghaffar, a lawyer representing China Aircraft Leasing.
Cash-strapped Air India is currently for sale with the India government offering a 100% stake in the business and low cost brand Air India Express.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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