A global aviation leasing watchdog has put India on a watchlist with a negative outlook saying it failed to comply with international aircraft repossession norms after airline Go First was granted bankruptcy protection.
The move from the Aviation Working Group (AWG), a UK-based entity that monitors leasing and financing laws on behalf of planemakers and lessors, could raise leasing costs for Indian airlines and further jolt lessors’ confidence in the world’s third-largest domestic aviation market.
The inability to repossess Go First’s planes in a timely manner comes as Indian air travel is booming and hundreds of new jets have been ordered by local carriers, who regularly turn to lessors to help finance plane purchases.
