DVB Bank threatens to quit Indian aircraft finance market

Germany-based DVB Bank has threatened to withdraw from the Indian aircraft finance market. The bank says DGCA's failure to de-register two of its aircraft operated by Kingfisher Airline has prompted such a move. The bank, after termination of lease agreement, has also re-possessed two aircraft in Turkey operated by Kingfisher.

On November 29, the bank wrote to the civil aviation ministry and stated delay in de-registrations is 'causing increasing damage' and 'further wait is not possible'.

In a letter the bank said, "We cannot afford to wait much longer without visible progress in this matter and will have to seek the help and protection of the Indian legal system vis-a-vis the DGCA to do their duty and deregister our aircraft. We also consider to withdraw from the Indian aircraft finance market."

Capt. GR Gopinath, Air Deccan founder, said this doesn't augur well for aircraft finance/leasing market.

DGCA Arun Mishra was not available for comments.

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