GE Capital Aviation Services (GECAS) is "pursuing all available legal remedies" against India's Paramount Airways for allegedly defaulting on the payment of lease charges.
India's Directorate-General of Civil Aviation (DGCA) de-registered Paramount's three Embraer E-175s on 4 December after GECAS made its allegation. Paramount successfully appealed in the Delhi High Court, which ruled against the de-registration and allowed the carrier to operate the aircraft again. Paramount, which had cancelled 14 flights last weekend due to the DGCA's order, resumed services on 8 December.
GECAS, however, disagrees with the court decision and is assessing its options.
"Paramount defaulted and continues to be in default of its contractual obligations. GECAS, as it does in all such circumstances, is pursuing all available legal remedies and is confident that it will prevail," says a GECAS spokesman.
Paramount declines to comment. It previously maintained that it does not owe GECAS any payment, and said that the leesor actually owes it "a refund of $2 million from the maintenance reserves".
GECAS says that it "vigorously disagrees with Paramount's characterisations of the facts".
Source: Air Transport Intelligence news
