NEW DELHI (Reuters) – The world’s second largest aircraft lessor, SMBC Aviation Capital, has warned that India’s decision to block leasing firms from reclaiming Go First planes will jolt the market and spark a confidence crisis, legal papers show.
SMBC, along with firms such as Jackson Square Aviation and Bank of China Aviation, raised the alarm after a tribunal gave Go Airlines (India) Ltd bankruptcy protection to allow it to revive itself, but barred lessors from repossessing planes.
A boom in traffic in the world’s third-biggest aviation market prompted record jet orders but two major airline failures, of Kingfisher Airlines in 2012 and Jet Airways in 2019, have taken some of the shine off the market.
