The Indian “legal regime” of the Insolvency & Bankruptcy Code (IBC), which hindered lessors from repossessing their aircraft from airlines, was costing domestic carriers an additional $1.2-1.3 billion in lease rentals, the ministry of civil aviation stated on Friday.
The time period during which the airlines incurred these additional costs is unclear.
Aircraft lessors charge higher lease rentals when they see that the local legal regime is not allowing them to repossess planes quickly from an airline that has gone insolvent.
