Aviation leasing watchdog cuts India’s compliance rating
The HinduI, A global aviation leasing watchdog has cut India’s compliance rating with international leasing laws and kept the country on a watchlist with a negative outlook amid a dispute between local airline Go First and its aircraft lessors. The AWG said 130 days had passed since the lessors’ request to repossess their aircraft, more than double the maximum waiting period of 60 days according to India’s obligations under the Cape Town Convention, an international treaty protecting the repossession rights of lessors. The move could further hurt lessor confidence in the world’s third-largest aviation market, warned AWG, whose members include major lessors and financial institutions such as Aircastle, BOC Aviation, SMBC Aviation Capital, Deutsche Bank, Goldman Sachs and Morgan Stanley. SMBC, the world’s second-largest aircraft lessor, which also has some planes leased to Go First, warned in May that India’s decision to block leasing firms from reclaiming the airline’s planes would hit lessors’ confidence in that market.
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‘India is a risky jurisdiction…,’ SMBC Aviation warns amid Go First crisis
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