Aviation Working Group (AWG), a global aviation group comprising plane manufacturers and lessors, on Thursday downgraded India to “negative” from “positive” as lessors were not able to repossess their aircraft from Go First more than seven months after the airline filed for insolvency.
The leasing cost stands as a prominent expense for Indian airlines. With AWG’s downgrade, it is probable that lessors will increase the aircraft leasing rates for Indian carriers.
AWG placed India on its watch list in May after the National Company Law Tribunal (NCLT) barred lessors from repossessing planes from Go First.
