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Irish lessor seeks to reclaim its planes leased to Jet Airways

Dublin - Irish leasing company Avolon asked the Indian civil aviation regulator to cancel the registration of two Boeing 737-800 leased to Jet Airways.

Irish company became the first lessor to reclaim its planes from the financially troubled airline.

A large number of leased aircraft of the Indian carrier are currently grounded because of the payment dues, but Avolon became the first lessor to apply Indian authorities for deregistration of its planes.

More than two third of Jet Airways' fleet is currently grounded. The airline is operating only 26 of its 101 aircraft for daily scheduled flights and the number is dropping. The company faces the risk of losing its permissions to operate on international routes.

The financial problems of the airline remain despite the $217 million capital injection from the creditors. A few weeks ago the Indian government made a call to the Indian banks to rescue the financially distressed operator.

The banks bought a 50.1% stake in Jet Airways on an interim basis, and are now seeking permanent investors for the budget carrier that are suffering from huge debts.