INDIAN DOMESTIC carrier ModiLuft has been effectively grounded following court action by Lufthansa, which is trying to repossess lease-expired aircraft. The case is the latest in a series of disputes which have arisen between Western aircraft lessors and private Indian carriers which have allegedly failed to meet their financial obligations.
The German flag carrier claims that ModiLuft has still not returned three Boeing 737-200s, the leases of which expired in May. Following a preliminary hearing on 6 November, ModiLuft was ordered by a judge to remove the 737s from service until the case comes to court in January.
The airline is meanwhile obliged to keep the aircraft fully insured, as well as in an acceptable technical condition.
Lufthansa says that it has been forced into taking legal action, exasperated by the Indian carrier's alleged reluctance to help resolve the problem.
Although there is no immediate prospect of the aircraft being returned, "-at least we've been successful in grounding the aircraft", says a New Dehli-based Lufthansa official. "We saw no proposals of any kind forthcoming from ModiLuft, and were left with no option but to go through the courts," he adds.
Meanwhile, three Boeing 737-400s that had been sub-leased to ModiLuft by Air UK have also been withdrawn from service, pending a lease-extension agreement. According to Jeremy Dixon, Air UK's special projects director, two of the aircraft are in the UK undergoing maintenance, while the third is grounded in India. Dixon says he hopes that ModiLuft will renew leases on all three, and that this "-might happen at any time", before the aircraft are progressively transferred to KLM next year.
Meanwhile, the German carrier is believed to be considering a tie-up with the Hinduja Group to support that Indian company's plan to start a domestic passenger airline. The two companies already operate a joint-venture cargo airline. Lufthansa would not have an equity interest in the new venture, but would provide services like technical back-up, pilot training and marketing. A support agreement existed with ModiLuft before the rift in relations in May.
Source: Flight International
