Los Angeles Business Journal

ILFC Takes Back Planes from Airline in India

By Deborah Crowe Wednesday, December 12, 2012

International Lease Finance Corp. has repossessed four jetliners that it leased to struggling Indian carrier Kingfisher Airlines citing non-payment, according to a news report.

The Century City aircraft leasing company, which leases airplanes to five airlines in India, would not comment Wednesday on the report in Economics Times, which said also that a fifth Kingfisher plane apparently not belonging to ILFC was confiscated by India’s service tax department in a separate dispute.

ILFC had leased six Airbus planes for Kingfisher’s fleet of 42 aircraft, Economics Times said. The BBC reported that Kingfisher, which launched in 2005 and has never been profitable, is in talks with Etihad Airways and other investors interested in taking a stake in the company.

ILFC, which has more than 1,000 owned or managed aircraft in its fleet, is controlled by insurance giant American International Group, which announced Monday that it was selling a majority stake to a group of Chinese investors.