BOC Aviation awarded $90M by Kingfisher Airlines
India‘s Kingfisher Airlines is long gone, but its troubles – are not. The UK High Court on February 5, 2018, awarded BOC Aviation – Singapore based leasing company – an estimated amount of $90 million in claims to be paid by the defendants - the now defunct Indian airline and its parent company.
BOC Aviation claim relates to a four aircraft leasing agreement with Kingfisher Airlines. The High Court found that "the defendants have no real prospect of successfully defending the claim" and awarded the leasing company an amount of nearly $90 million, which is consisted of overdue payment with interest payments and legal costs, Bloomberg Quint writes.
"We are pleased with the judgement but would not like to comment further at this stage," a BOC Aviation spokesperson is quoted in the publication.
Kingfisher Airlines went bankrupt in 2013. The Mumbai-based airline group was in business 2003-2013 and until December 2011 it had the second largest share in India’s domestic air travel market. However, in December 2011 its accounts were frozen by the country’s Income Tax Department, starting a period of financial unease, which finished in bankruptcy in 2013.
The bankruptcy of Kingfisher Airlines incited the aircraft leasing companies’ distrust in Indian carriers and authorities, understanding the problem of retrieving leased aircraft back in case an airline goes down.