DVB Bank SE (DVB), one of the most active aircraft financiers in India, suspended all financing to Indian carriers after the country’s administration failed to deregister two airliners following their repossession from Kingfisher Airlines Ltd. (KAIR)
DVB repossessed two Airbus A320 aircraft earlier this year from Kingfisher after terminating leases on the planes, the lender said in an e-mailed statement. The bank still hasn’t gotten the necessary documentation that would let it place the jets elsewhere, Bertrand Grabowski, managing director for aviation and rail at the Frankfurt-based bank, said in a telephone interview.
“Until we have the planes deregistered, we can’t redeploy the airplanes and that means a loss for DVB,” Grabowski said. Financing into the Indian market is suspended until further notice, he said.
DVB has placed financing directly or indirectly through lessors with airlines including Air India Ltd., Kingfisher, IndiGo and Jet Airways India Ltd. (JETIN)
India Aviation Minister Ajit Singh said he was not aware of DVB’s decision when asked in an interview today about the situation. He declined to comment further.
Arun Mishra, the director general of civil aviation in India, didn’t respond to two calls to his mobile phone. Mishra is the nation’s aviation regulator and his office is responsible for registering and deregistering aircraft.
Holding security over an aircraft registered in India “does not provide acceptable protection to owner and mortagees,” Grabowski said in an earlier e-mailed statement.
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