Last week, Reuters reported that crisis talks between Jet and aircraft lessors had failed to ease the row over late payments, prompting some lessors to explore repossessing their aircraft.
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The source said that Avianca owes lessors some $100 million.
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Major lessors Air Lease and Avolon are also in town.
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The rest are leased from many lessors including GE Capital Aviation Services, U.S.-based BBAM and Japan's SMBC Aviation Capital, sources said, underscoring the need to get lessors on board with the bailout plan.
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In theory, lessors have the option of filing a complaint with the government, which in turn can cancel a plane's registration within five working days, allowing lessors to repossess it subject to certain conditions, including unpaid dues.
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"This is a widespread issue among many lessors but they understand that a lot depends on whether banks re-open their funding for HNA and lessors are betting on that," said one financier at a European bank.
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"This is a widespread issue among many lessors but they understand that a lot depends on whether banks re-open their funding for HNA and lessors are betting on that," said one financier at a European bank.
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Put together, the two lessors own 40 percent of the carrier's fleet.
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The deal which includes several airplane lessors came together at the last minute.
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All but one of the world's 15 largest aircraft lessors have operations there.
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That means Jet's lessors could choose to reclaim planes in case of a default.
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Reuters reported last month that some of Jet's lessors had begun terminating lease deals.
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Jet Airways is facing financial difficulties and owes money to pilots, lessors and vendors.
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The crisis at Jet, which owes vast sums to suppliers, pilots, lessors and oil companies, deepened in recent weeks as its lessors scrambled to de-register and take back planes, in a sign the bank rescue plan failed to assuage their concerns.
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Lessors have grounded more than three dozen planes, forcing hundreds of flights to be canceled.
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The doubts centre on whether there really is enough demand for the lessors' latest orders.
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Many lessors struggle to find new operators for aircraft returned to them when leases expire.
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Once deregistered, lessors are free to reclaim a plane and lease it to another airline.
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It has been unable to pay pilots' salaries and has outstanding bills to aircraft lessors.
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Lessors have grounded more than three dozen planes, forcing hundreds of flights to be cancelled.
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Kingfisher's bankruptcy caused job losses, lessors lost millions of dollars and banks took massive writedowns.
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Lessors buy aircraft but don't operate them, meaning they have a different perspective than airlines.
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But it did say the carrier faces three lawsuits from aircraft lessors totaling 14 planes.
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The crisis at Jet, which owes vast sums to suppliers, pilots lessors and oil companies, has deepened in recent weeks as its lessors have scrambled to de-register and take back planes, in a sign the bailout plan had failed to assuage their concerns.
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The crisis at Jet, which owes vast sums to suppliers, pilots lessors and oil companies, has deepened in recent weeks as its lessors have scrambled to de-register and take back planes, in a sign the bank rescue plan had failed to assuage their concerns.
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Jet, which also owes lessors, suppliers, pilots and oil companies, has been haemorrhaging planes in recent weeks as its lessors have scrambled to de-register and take back aircraft even as Jet's lenders have sought expressions of interest from investors interested in turning it around.
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By January 2017, these lessors owned 583 planes out of the country's 1,235 fleet, it said.
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"Lessors made a lot of money on the way up," says Saj Ahmad, an aviation expert.
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LESSORS FLEE At its peak, Jet operated over 120 planes and well over 600 daily flights.
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Kelly said he expected pressure on the newer lessors as interest rates begin to creep up.
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The carrier added it was keeping its lessors informed about efforts to improve its financial situation.
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Some lessors have been sceptical about whether this proposed bailout can clear their dues on time.
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One said Jet has outstanding dues of about $400 million, mainly owed to lessors and vendors.
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That could land unwanted aircraft back into the laps of lessors needing to find new takers.
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Lessors have already forced the airline to ground at least four of its new fuel-efficient Boeing 737 MAX aircraft over non-payment of dues, the first source said, adding more planes could be grounded if lessors are unconvinced by the plan Jet presents next week.
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Jet, which also owes vast sums to lessors, suppliers, pilots and oil companies, has been losing planes in recent weeks as lessors scramble to de-register and take back their aircraft, even as Jet's lenders have sought expressions of interest in the carrier from potential investors.
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Jet, India's biggest full-service carrier by market share, owes money to pilots, lessors, banks and vendors.
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The number of Chinese lessors alone has grown from almost none to over 50 in a decade.
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SpiceJet has been in talks with lessors to take some of Jet's aircraft, a source has said.
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Already 41 planes have been grounded by lessors in the past three months, leading to flight cancellations.
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They provide this information to brokers, investors, buyers, and lessors, and it's constantly changing and being updated.
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DAE has become one of the world's largest aircraft lessors after acquiring Dublin-based AWAS last year.
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The 25-year-old airline is facing financial difficulties and owes money to pilots, lessors and vendors.
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Jet, saddled with more than $1.2 billion of debt, owes money to banks, lessors, suppliers and pilots.
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The carrier filed for bankruptcy protection in December and aircraft lessors repossessed dozens of planes in April.
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The demise of Kingfisher Airlines in 2012 left thousands without jobs and lessors lost millions of dollars.
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Jet Airways' lessors have offered 50 aircraft to SpiceJet, according to a report by news wire IANS.
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South Korean low-cost carrier Eastar has begun returning some of its Boeing 737 planes to lessors.
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Aircraft lessors have been supportive of the company's efforts to improve its liquidity, Jet said bit.ly/2T0UjWZ.
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But with air pockets in sight, industry executives increasingly point to an expected shakeout among smaller lessors.
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MUFG provides debt to airlines, plane lessors and others through underwriting, export credit financing and other means.
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The airline's operations have shrunk dramatically since April, when lessors won definitive rulings allowing them to repossess planes.
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Overall, Jet's lessors have, so far, sought to deregister and repossess at least 48 planes operated by Jet.
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Aircraft lessors are big customers of Boeing and their trust is key to maintaining a healthy sales pipeline.
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India's civil aviation regulator disclosed on Tuesday that lessors have sought to de-register another seven Jet aircraft.
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However, Air Berlin said Monday it was halting long-haul flights from Oct 15 after lessors recalled planes.
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Lessors have grounded more than three dozen Jet Airways planes, forcing hundreds of its flights to be canceled.
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Once de-registered, lessors can take the plane out of the country and lease them to other airlines.
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Jet's lessors are growing increasingly skeptical about the carrier's ability to pay its dues, sources have told Reuters.
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Trauchessec said MUFG also can benefit from the active trading between aircraft lessors and investors in the Americas.
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Yet many air lessors say they would be quietly relieved if hordes of exiled bankers do not turn up.
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And as lessors are often bigger than airlines, they can strike better deals with planemakers and borrow more cheaply.
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Airlines are not alone in using cheap money to go on a shopping spree; so are lessors and banks.
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Industry publication Flightglobal estimates the world's top 50 aircraft lessors have a total fleet valued at about $256 billion.
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It said it was in negotiations with its lessors to return some of its aircraft including all Airbus A330s.
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Garuda plans to start negotiating with 27 lessors to reduce rental costs, Mansury said, declining to give further details.
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One of the world's largest aircraft lessors, the company recently increased an existing four-year loan to $800 million.
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"Right now Jet is in survival mode, there is no strategy," said an executive at one of Jet's lessors.
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Grappling with a debt of more than $1 billion, Jet has delayed payments to banks, lessors, vendors and staff.
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It has delayed payments to banks, suppliers, employees and aircraft lessors - some of which have begun terminating lease deals.
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"The lessors are really hassled," said one of the sources, declining to be identified as the discussions were private.
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SS) have emerged among the list of top 15 lessors after placing multi-billion dollar orders for Airbus (AIR.
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Lessors control 40 percent of the world's fleet and act nimbly, moving jets around the world to meet demand.
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That means around two-thirds of its fleet is grounded for non-payment to lessors, maintenance or other reasons.
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Since announcing their deals with the e-commerce giant last year, the two lessors have seen their stocks soar.
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Once deregistered, lessors are free to reclaim a plane and lease it to another airline anywhere in the world.
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The double-act attended a Sydney airline gathering last week and held back-to back meetings with airlines and lessors.
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In 2007, Chinese lessors owned just 22 jets out of China's 430-strong leased fleet, according to ICBC Financial Leasing.
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Aircraft lessors took up the slack created by the implosion of the banks, renting their old offices in central Dublin.
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Jet did not respond to multiple requests for comment but has said it is "actively engaged" with all its lessors.
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Once de-registered, lessors are free to take a plane out of the country and lease it to other airlines.
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It has also struggled for cash, asking some lenders to extend loans and delaying payments to lessors in several cases.
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Jet had a fleet of more than 120 aircraft but more than half have been deregistered and repossessed by lessors.
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It was not immediately clear which of its lessors were planning to apply for de-registration in the coming days.
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EXCLUSIVE-LESSORS TO INDIA'S JET AIRWAYS PLAN TO APPLY FOR DE-REGISTRATION OF MANY MORE PLANES IN COMING DAYS -SOURCES
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Avianca Brasil, the country's fourth-largest airline, filed for bankruptcy in December after falling behind on payments to aircraft lessors.
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Jet's financial troubles have rekindled memories of Kingfisher Airlines' collapse in 2012, which forced lessors to write off millions of dollars.
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But none of the partnership talks bore fruit and the airline ran out of runway when aircraft lessors pulled their support.
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HNA has also recently struggled for cash, asking some lenders to extend loans and delaying payments to lessors in several cases.
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Jet, once the biggest private carrier in the country, owes vast sums to its lessors, employees, fuel suppliers and other parties.
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Lessors say liquidity is abundant and that financial strains in one part of the globe can be offset by demand elsewhere.
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As soon as I entered that, I was able to put in PELOSI, which led to LESSORS, which helped with TRACTS.
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Chinese lessors, mostly backed by state-owned banks, have been expanding as China's major airlines open more routes at home and overseas.
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India's second-largest carrier, grappling with debt of more than $1 billion, Jet has delayed payments to banks, lessors, vendors and staff.
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HNA has also recently struggled for cash, asking some lenders to extend loans and lessors to delay due payments in several cases.
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Once a plane is de-registered, lessors are free to take it out of the country and lease it to other airlines.
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And when the airline wants to buy aircraft, it deals with international aircraft lessors who demand financial transparency and accountability from management.
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But for the first time, most came from lessors, which lease them to operators, rather than from the airlines that use them.
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India's aviation regulator said on its website on Wednesday that lessors had applied to de-register another four Boeing Co 737 planes.
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RYANAIR CEO SAYS WILL SLOW DOWN RATE OF RETIREMENT OF OLD 737S; WILL TALK WITH LESSORS ABOUT RETURNS AND LIKELY SLOW SALES
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The planes flown by Air Berlin and Niki were leased, and Lufthansa has now taken on many of them from the lessors.
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The airline also owes money to employees, vendors and lessors - some of whom are considering taking back aircraft, sources have told Reuters.
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The airline owes money to banks, employees, vendors and lessors - some of which are exploring taking back aircraft, sources have told Reuters.
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It has delayed payments to banks, suppliers, pilots and lessors - some of whom have started cancelling their lease deals with the airlines.
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Since then, it has obtained several court rulings that allowed it to hold onto the planes despite vigorous protests from its lessors.
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"We value our relationships with lessors and we are committed to meeting our obligations to them," a spokesman for HNA Group said.
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Debts to suppliers and lessors have also raised the prospect of potential applications to wind up the South African subsidiaries, Choppies added.
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The company owes money to banks, pilots, vendors and lessors - some of whom are considering taking back aircraft, sources have told Reuters.
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"I hold your hands in friendship," he told an audience of 300 airlines, suppliers, lessors and bankers at an aviation conference in Tehran.
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But some lessors quickly lost patience as the bank did not provide details and Jet's founder angrily defied them to take back planes.
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Aercap Holdings, GE Capital Aviation Services, Avolon and BOC Aviation are among the big lessors grounding Jet's aircraft, leasing and industry sources say.
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Jet, however, said on Thursday that five planes had been grounded due to non-payment of dues to lessors, as reported to regulators.
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The lessors involved include Aircastle and Aviation Capital Group, which had leased Avianca Brasil a combined 18 planes, as of early this year.
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The government said in a statement the new company would initially lease aircraft from international lessors and sub-lease them to domestic operators.
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EXCLUSIVE-ABOUT SIX LESSORS LIKELY TO APPLY FOR DE-REGISTRATION OF UP TO 15 JET AIRWAYS PLANES OVER THE NEXT 10 DAYS -SOURCE
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It secured a court order to suspend non-payment lawsuits by various aircraft lessors seeking to get their planes back that same day.
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It has delayed payments to banks, suppliers, pilots and lessors - some of which have forced the airline to ground as many as 40 planes.
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Drawing more than 4,500 airline bigwigs, lessors and bankers, such gatherings are usually preoccupied by issues such as aeroplane prices and the aviation cycle.
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Jet has delayed payments to its pilots, suppliers and lessors for months and defaulted on loans after racking up over $1 billion in debt.
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Commercial lessors often do, too, and they may have the ability to sue for the remaining term of the lease if things go south.
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The crisis has deepened in recent weeks as lessors have started applying to deregister planes, signaling the planned bailout had not assuaged their concerns.
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Jet has delayed payments to pilots, suppliers and lessors for months and defaulted on loans after racking up more than $1 billion in debt.
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It has delayed payments to banks, suppliers, pilots and lessors - some of whom have forced the airline to ground as many as 40 planes.
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It has delayed payments to banks, suppliers, pilots and lessors - some of whom have forced the airline to ground as many as 41 planes.
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Since then, it has received various court rulings that have allowed it to hold on to its planes dispute vigorous protests by its lessors.
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But airlines are increasingly looking to lessors to quickly add and subtract capacity at short notice to match market demand, experts told the conference.
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Four Chinese lessors - including BOC Aviation - are among the world's top 2320 by fleet value in a $228 billion industry, according to consultancy Flightglobal.
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The airline, which is struggling financially, has said that 32 of the planes in its fleet have been grounded for non-payment to lessors.
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Reuters had also reported that AirAsia had been in talks with lessors, including cash-rich Chinese companies, to sell a stake in its leasing subsidiary.
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"AWAS offers a good platform for lessors looking for a diverse portfolio," said one leasing executive who was not authorized to speak to the media.
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Jet Airways has delayed payments to pilots, suppliers and lessors for months and defaulted on loans after racking up more than $1 billion in debt.
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Since then, it has scored several rounds of successful court decisions that allowed it to hold onto the planes despite vigorous protests from its lessors.
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It wants the partner to be a consortium of international lessors, financial institutions and investors, and said bidders had until May 20 to show interest.
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In theory, lessors have the option to file a complaint with the DGCA, which in turn can cancel a plane's registration within five working days.
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Boeing forecasts that 53% of the aircraft it sells to lessors this year will be financed this way, up from about 33% four years ago.
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But the share price of America's biggest listed lessors fell at the start of the year, because of fears that profits will come under pressure.
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Avianca Brasil fell behind on its payroll obligations in March and for months has been battling aircraft lessors trying to repossess parts of its fleet.
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The airline has been rapidly shedding aircraft in recent weeks, as lessors have rushed to deregister and repossess planes in the wake of the turmoil.
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Reuters reported in October that AirAsia has been in talks with lessors, including cash-rich Chinese companies, to sell a stake in its leasing subsidiary.
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Slattery predicted that lessors, which depend heavily on access to funds to run their capital-intensive businesses, would in future exert more pressure on airlines.
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Slattery predicted that lessors, which depend heavily on access to funds to run their capital-intensive businesses, would in future exert more pressure on airlines.
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DAE, a government-controlled company set up in 4003, has become one of the world's largest aircraft lessors after acquiring Dublin-based AWAS last year.
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As a result he said he had been speaking to lessors about narrowbody options at the IATA airlines industry association gathering in Dublin earlier this week.
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This means lessors are on the hook for the money banks have lent them to acquire the planes, putting them at risk of default, he said.
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SAO PAULO, April 17 (Reuters) - Struggling Brazilian airline Avianca Brasil will return eight planes to its lessors after Easter, Brazilian aviation regulator ANAC said on Wednesday.
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Deal making is picking up in the $228 billion global plane leasing sector, with Asian lessors grabbing a bigger share, buoyed by the growth in China.
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When India's Kingfisher Airlines went bankrupt in 2012, lessors were forced to write off millions of dollars in losses and thousands of people lost their jobs.
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Lucky Air, Capital Airlines and Tianjin Airlines said in separate statements that they maintained good relationships with their respective lessors and were operating safely and stably.
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This means lessors are on the hook for the money banks have lent them to acquire the planes, putting them at risk of default, he said.
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Air Niugini expects responses from lessors and manufacturers from its request for information soon and will later launch a more formal request for proposal, he said.
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The company provides aviation, shipping, and equipment leasing services, and is among the largest lessors in China with total assets of CNY164bn as of mid-2016.
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But a senior Boeing executive struck a positive note, saying "once lessors see the money come into their pockets, that's when the edginess will go away".
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As airlines increasingly opt to lease planes, Asian lessors are investing billions of dollars to expand, having won backing from cash-rich banks and financial investors.
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Deals also include 100 jets to Delta Air Lines, 50 each to lessors AerCap and China Aircraft Leasing (CALC) and 75 spread between two other airlines.
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Saddled with more than $1.2 billion of bank debt, Jet is fighting for survival as it also owes money to lessors, suppliers, pilots and oil companies.
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Some have also been scrambling to hire former Jet pilots, cabin crew and engineers, while looking to lease planes that have been repossessed by Jet's lessors.
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The auction would have capped an arduous process in which Avianca Brasil fought aircraft lessors for months to try to keep operating its fleet despite missed payments.
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Aircraft lessors who control about half the world's fleet are traditionally cautious about production increases, fearing that a glut would knock values of assets they already own.
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DUBAI, Nov 1 (Reuters) - Dubai Aerospace Enterprise (DAE), one of the world's largest aircraft lessors, plans to issue $1.25 billion in senior notes, it said late Wednesday.
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"Aircraft lessors have been supportive of the company's efforts in this regard," Jet said in its most recent statement to the Mumbai stock exchange on April 2.
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Meloche also said that several Chinese lessors, many of which were looking at sale-and-leaseback opportunities, had issued term sheets in support of C-Series deliveries.
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Avianca Brasil has filed for bankruptcy protection and lost most of its fleet after lessors obtained favorable court decisions to take aircraft back for lack of payments.
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Jet has more than $1 billion in debt, and owes money to banks, suppliers, pilots and lessors - some of whom have started terminating leases with the carrier.
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Rodgerson said the airline already had had discussions with some of Avianca Brasil's lessors, which include GECAS and Aircastle, to take over the planes at cheaper rates.
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Saddled with debt of more than $1 billion, Jet owes money to banks, suppliers, pilots and lessors - several of whom have started terminating leases with the carrier.
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Jet will use the money to partly clear dues owed to lessors, vendors, creditors and employees in a phased manner, the airline said in a separate statement.
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Wow air has been reducing the size of its fleet and had said its cash flow was under pressure due to stricter terms from creditors and lessors.
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Between the end of 2016 and September 2018, Avianca Brasil's liabilities to aircraft lessors quintupled to 415 million reais ($112 million), according to the carrier's financial statements.
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Aircraft lessors and the company's creditors have "demanded stricter payment terms than before, putting further pressure on the company's cash flow," WOW Air said in a statement Tuesday.
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Aircraft lessors and the company's creditors have "demanded stricter payment terms than before, putting further pressure on the company's cash flow," WOW air said in a statement Tuesday.
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Lessors also forced Jet to ground dozens of planes over non-payment of dues and it is left with just 13 aircraft, a senior SBI source told Reuters.
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They know that other financial centres such as Hong Kong and Singapore are aggressively trying to attract lessors away from Dublin with lower tax rates and other incentives.
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Once India's leading private carrier, Jet has been forced to ground more than three quarters of its fleet, mainly by lessors owed several months' payments, sources have said.
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If it is pushed into bankruptcy and lessors start pulling even more planes out of service, there would be nothing left for any potential investors, the official said.
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Aircraft lessors like BOC Aviation are raising funds and expanding fleets to tap into growing demand from airlines around the world that are seeking to lower fixed costs.
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Avianca is battling its main creditors, aircraft lessors Aircastle Ltd and General Electric Co's unit GE Capital Aviation Services, to avoid or delay the grounding of its planes.
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Avianca Brasil filed for bankruptcy after its plane lessors moved to repossess its fleet when the carrier fell behind on payments because of the depreciation of the real.
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Jet said it is "actively engaged with its partner airlines and aircraft lessors, providing them regular updates on its efforts to improve liquidity as well as ensure operational reliability".
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Jet, which also owes vast sums to its lessors, pilots, fuel suppliers and other parties, was crippled by mounting losses as it tried to compete with low-cost rivals.
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Official GDP growth of 26% in 2015 was largely the result of lessors buying so many new planes; the rest of the economy probably grew only by about 5%.
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At least 69 aircraft have been grounded due to money owed to lessors, according to stock exchange filings by Jet, while the remainder are out of service for maintenance.
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While some lessors have already taken their planes out after a mutual agreement with Jet, sources say the latest applications to do so are on a non-consensual basis.
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HNA had "stopped paying – via their owned airline subsidiaries – some lessors for leased jets for the past two to three months," Aergo CEO Fred Browne was quoted as saying.
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DUBAI, May 21 (Reuters) - Dubai Aerospace Enterprise (DAE), one of the world's largest aircraft lessors, said on Monday it had signed a four-year loan deal for $480 million.
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Avianca Brasil filed for bankruptcy protection in December and has since incurred increasing debts with lessors and airport operators as it continued to carry out most of its scheduled flights.
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Lufthansa, which still plans to buy other parts of Air Berlin, has already arranged with lessors to take on some of the Niki planes, which has drawn criticism from Lauda.
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Jefferies said it "interviewed several airline executives, in addition to lessors" around the world this spring, to find out what they would want to see from Boeing in the NMA.
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Avianca Brasil filed for bankruptcy protection in December and has been running up debts with lessors and airport operators as it continues to carry out most of its scheduled flights.
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Rival low-cost carriers have also been scooping up aircraft that were formerly operated by Jet from its lessors, and poaching hundreds of its pilots, cabin crew and other staffers.
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Jet has racked up over $1 billion in debt, and owes money to banks, suppliers, pilots and lessors - some of whom have started terminating their lease deals with the carrier.
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Analysts expect a rise in asset-backed secularizations (ABS) by aircraft lessors as they tap into a growing demand for aviation assets from long-term investors such as pension funds.
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Companies that signed multi-year leases when they were at their highs have to pay those costs whether or not they move crude unless they negotiate new rates with lessors.
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The announcements are a setback for creditors hoping to recover a portion of the more than $3 billion that the airline owes to its lenders, lessors, staff and other suppliers.
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The ruling, a copy of which was reviewed by Reuters, is the latest development in a bitter legal fight between lessors and the carrier, which is going through bankruptcy protection.
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Sponsors of Sunday's Tehran meeting include Chinese-backed Dublin leasing firm Avolon and other foreign lessors, who could have a significant role due to long delivery times for new jets.
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The airline, which controls a sixth of India's booming aviation market, owes money to banks, vendors and lessors - some of whom are considering taking back aircraft, sources have told Reuters.
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The shutdown has deepened the crisis as dues to lessors, staff and suppliers pile up and lenders scramble to find a buyer for what was once India's largest private airline.
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Finnair has six A321 jets on order with deliveries starting next year and Vauramo said there was good availability from lessors for A321s, although there was healthy competition on price.
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Two lessors have applied to the Directorate General of Civil Aviation (DGCA), India's aviation regulator, to deregister at least five planes leased to cash-strapped Jet, three of the sources said.
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The airline provides regular updates on its efforts to improve liquidity to its lessors, who have been supportive, the spokesman said, adding that the company does not comment on specific relationships.
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LESSORS FLEE A Jet collapse would also be a potential blow to Boeing Co , which is already grappling with the fallout of two recent fatal crashes involving its 737 MAX aircraft.
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The aviation leasing industry has emerged as a significant new asset class in recent years, but it faces challenges such as declining lease rates and tight returns for lessors, analysts said.
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Castlelake was ranked as the 32nd biggest lessor with the value of its total fleet estimated at $2.1 billion in consultancy FlightGlobal's ranking of top global lessors as of September 2018.
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Lessors haven't yet found airline customers for more than 7373 narrow-body aircraft on order over the next five years, according to a March 8007 report by Goldman Sachs Group Inc.
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However, Tata would also inherit a company struggling to make any money, and whose survival is crucial for the host of lessors from which it leases over 100 of its aeroplanes.
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Of the new MAX 10 jet, Boeing sales vice president Ihssane Mounir said: "It is getting a big endorsement from airlines and that is leading to more lessors endorsing it too".
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It has not announced firm orders since November but a taste of what is in the pipeline for December came with barely noticed stock exchange filings confirming demand from Chinese lessors.
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India's second-largest carrier has delayed payments to its pilots, suppliers and lessors for months and defaulted on loans, as it battles intensifying competition, a weak rupee and rising fuel costs.
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The C919, which has received 785 orders to date, looks the strongest because of its backing by Chinese airlines and lessors, said DVB Bank head of aviation research Bert van Leeuwen.
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"This is not as rare as one would think — people do fraudulent deals all the time," said Randall McCathren, managing director of the Association of Consumer Vehicle Lessors, a trade group.
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Amid talks for a bailout led by state-run banks, lessors have forced the airline to ground at least 37 planes over non-payment of dues and some have also threatened repossession.
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The loss of aircraft and friction with lessors is just the latest major setback for Jet, which has been struggling for years, beset by an insurgent group of low-cost Indian competitors.
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"Despite Goyal's departure from Jet, lessors don't seem to think the carrier can be rescued, judging by the urgency in repossessing aircraft," said Shukor Yusof, the head of aviation consultancy Endau Analytics.
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The world's largest 20 lessors now comprise a handful of Chinese-owned firms, including the likes of fast-growing China Aircraft Leasing Group Holdings Ltd and the leasing units of Chinese banks.
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The troubles at India's Jet, which is saddled with a billion dollars in debt, have rekindled memories of Kingfisher Airlines' collapse in 2012 that forced lessors to write off millions of dollars.
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Keskar said Jet's lessors were taking deliveries of new Boeing 737 MAX planes but that they had held back 4-5 of the jets in Seattle pending payment from the Indian carrier.
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Jet Airways on Thursday said another three aircraft had been grounded due to its failure to make payments, taking the total number to 28, but it has not specified the lessors involved.
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The move is part of a buying spree from Asian lessors in the final hours of 217 as Japanese-owned SMBC Aviation agreed to buy some 22018 Airbus jets, the sources said.
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"But I think it's an ongoing process and I think we are seeing these lessors hire more talent from the West, hire more experienced people," he told the rival Airline Economics conference.
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David Wang, managing director of China's ICBC Financial Leasing, one of the largest domestic Chinese lessors, also said it has been improving remarketing, redelivery and repossession skills over the last three years.
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The IPO comes as Asian lessors raise funds to challenge Western rivals in the nearly $217 billion global industry, with huge orders or acquisitions to service the world's fastest-growing aviation market.
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The Indian civil aviation regulator has said that lessors have already requested the return of more than half of Jet's fleet of about 115 aircraft, with the carrier voluntarily returning some of those.
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Although Irish lessors were once chiefly thought to be used by struggling African airlines unable to get bank loans, says Peter Barrett, the boss of SMBC Aviation Capital, now virtually everyone leases planes.
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After Kingfisher Airlines' disorderly collapse in 2012, India modified rules in line with the Cape Town convention, an international treaty that makes it easier for foreign lessors to repossess aircraft during payment defaults.
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More than two dozen Jet-operated planes have been deregistered this month and the airline had already been forced to ground over two-thirds of its fleet by lessors due to unpaid dues.
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NEW DELHI (Reuters) - India's Jet Airways has been forced to ground more than three quarters of its fleet after failing to pay lessors as it awaits bailout funds promised by state-run banks.
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An analysis of the latest data disclosed by the Directorate General of Civil Aviation shows that Jet's lessors have, so far, sought to deregister and repossess at least 48 planes operated by Jet.
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An analysis of the latest data disclosed by India's Directorate General of Civil Aviation shows that Jet's lessors have, so far, sought to deregister and repossess at least 48 planes operated by Jet.
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"There's some talk that the money is going to come but lessors have heard this for too long," one leasing source said on condition of anonymity due to the sensitivity of the matter.
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If a deep-pocketed investor is not found soon, Jet may struggle for funds again as the interim loan given by the banks will not last for very long, say lessors and analysts.
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The decision is the latest development in a bitter legal fight between lessors and the carrier, which is going through bankruptcy protection, and which could disrupt the airlines ability to complete scheduled flights.
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The decision is the latest development in a bitter legal fight between lessors and the carrier, which is going through bankruptcy protection, and which could disrupt the airline's ability to complete scheduled flights.
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At least 69 aircraft have been grounded due to money owed to lessors, showed stock exchange filings by Jet, while the remainder are out of service for maintenance, said one of the sources.
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Frustrated by the unpaid dues, Jet's lessors, including many of the world's biggest players such as GE Capital Aviation Services, Aercap Holdings and BOC Aviation have taken control of their planes, sources said.
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AWAS is the latest asset to be sold in the rapidly consolidating global aircraft leasing industry whose top 50 lessors had a fleet value of $256 billion last year, according to consultancy Flightglobal.
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About six lessors are expected to apply to India's aviation regulator over the next few days to de-register up to 15 planes that have already been grounded, a source has told Reuters.
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"Lessors are panicking as they haven't been paid and if Jet goes for insolvency, their planes will be stuck in India, so many of them are chasing SpiceJet," said the person quoted earlier.
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"Aircraft lessors must decide whether or not they will accept lower-than-contracted lease payments or allow lessees to default," said one loan banker, whose institution is a regular lender to the sector.
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Three bulk carriers, used for carrying commodities such as iron ore, coal and grain, were sold by lessors for a total of almost $20193 million, according to data from ship valuation firm VesselsValue.
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The airline was also forced to ground another six planes on Thursday due to non-payment of dues to lessors, taking the tally to 19 which is about 15 percent of its fleet.
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The attorney, who spoke on condition that he not be identified, also said the aircraft lessors had agreed to grant the airline 15 more days to fly the planes while renegotiating delinquent lease payments.
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The decision came as a surprise because Avianca Brasil reached an agreement in court on Monday with the aircrafts' owner and other lessors which granted the carrier 15 more days to operate the planes.
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Jet, which had already been forced by lessors to ground about 80 percent of its fleet prior to this, also said it had cancelled all west-bound overseas long-haul flights until tomorrow morning.
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Some lessors with direct knowledge of the matter said Jet had told them it would pay for one month's rental and maintenance by the end of last week, but no payment had been received.
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This deepens the crisis for Jet that has had to ground more than three-quarters of its fleet of 119 planes, many due to non-payment to lessors, leading to hundreds of flight cancellations.
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PLANES GROUNDED Amid talks for a bailout led by state-run banks, lessors have forced the airline to ground at least 37 planes over non-payment of dues and some have also threatened repossession.
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The airline, now controlled by its lenders, has had to ground more than three-quarters of its fleet of 119 planes, many due to non-payment to lessors, leading to hundreds of flight cancellations.
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As for Prime Air, the next few days will prove to be the fledgling fleet's biggest delivery test yet — and one coming as some pilots look to negotiate their union contracts with the lessors.
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Jet, which had already been forced by lessors to ground about 80 percent of its fleet prior to this, also said it had canceled all west-bound overseas long-haul flights until tomorrow morning.
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DUBAI, May 17 (Reuters) - Dubai Aerospace Enterprise (DAE), one of the world's largest aircraft lessors, is in talks to purchase 400 single aisle jets from Airbus and Boeing , its chief executive said on Thursday.
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Latest analysis of data disclosed by the Directorate General of Civil Aviation shows that Jet's lessors have, so far, sought to deregister and repossess at least four dozen of the planes operated by Jet.
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Preferred shares of Azul SA flew up 6.4 percent after the airline said it intends to fork out $3154.973 million for assets of rival Avianca Brasil, which was headed to court to face aircraft lessors.
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"All the company's lessors, creditors and authorities have been monitoring the situation even closer and demanded stricter payment terms then before further putting pressure on the company's cash flow," it said in this week's statement.
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Some lessors with direct knowledge of the matter said Jet had told them it would pay for one month's rental and maintenance by the end of last week, and that no payment had been received.
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Avianca is battling two of its main aircraft lessors, Aircastle Ltd and General Electric Co's unit GE Capital Aviation Services, who have tried so far unsuccessfully to ground or repossess 40 percent of its fleet.
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"There's no time frame, it will depend on when aircraft become available, we're not in an immediate hurry," Walsh told journalists on the sidelines of the conference, adding IAG had already held talks with lessors.
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TO) to sell its newest jets in the United States without hefty duties will boost airline confidence in the program, but the Canadian planemaker still faces challenges to win over lessors, Air Lease Corp (AL.
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DAE will emerge as one of the world's major aircraft lessors once the deal completes, increasing its fleet from 131 owned, managed and committed jets to 394 with a total value of over $14 billion.
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DUBLIN, Jan 22 (Reuters) - The chief executive of one of the world's largest aircraft lessors, Aercap, expects the new coronavirus that has emerged from Wuhan, China to impact Chinese airlines' profitability in the first quarter.
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The 25-year-old airline, founded by Naresh Goyal, owes money to lessors and vendors, has delayed salary payments to pilots and senior executives and is cutting flights on non-profitable routes to save money.
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Avianca Brasil filed for bankruptcy protection in December in an attempt to stall aircraft lessors who had sued to repossess its fleet, two months after the carrier started missing payments on many of its aircraft.
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Apart from building more infrastructure, training, and maintenance facilities, the government has tweaked rules for repossession of aircraft, which is making plane lessors more comfortable and could bring in more investors to India, Cognard said.
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Air Lease's leverage is among the lowest of pure-play aircraft lessors, with a debt to tangible common equity ratio of 2.6x as of March 31, 2017, essentially in line with its stated 2.5x target.
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Frustrated by the unpaid dues, Jet's lessors, including many of the world's biggest players such as GE Capital Aviation Services (GECAS), Aercap Holdings and BOC Aviation have already taken control of some their planes, sources said.
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Mansury, who previously oversaw treasury and finance at PT Bank Mandiri Tbk, is expected to boost the airline's credibility among creditors and spearhead talks with aircraft lessors, an official at the state enterprises ministry has said.
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Aircraft lessors including Aviation Capital Group, Avolon and BBAM filed applications on Tuesday to de-register 13 Boeing 737s, a source aware of the matter told Reuters, taking the total number of such requests to 24.
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Optimists insist the flood of Asian money - around 20 Chinese lessors have opened Dublin offices since the start of the decade - confirms the emergence of air finance as a worthy asset class in its own right.
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While Boeing and Airbus have traditionally launched new jets alongside purchase commitments from airlines, interest by aircraft lessors like Air Lease is forming an increasingly important role in the decision-making process, industry sources have said.
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But lessors remain concerned, and some, such as Avolon, SMBC Aviation Capital, Aircastle and a subsidiary of Mitsubishi Corp, have asked India's aviation regulator to de-register a combined 22 planes, according to the regulator's website.
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With debt of more than $1 billion, Jet has struggled to pay lenders, suppliers, pilots and lessors for months and was on the brink of bankruptcy, but was bailed out last month by state-run banks.
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At a higher court hearing on Monday, a panel of Brazilian judges postponed ruling for an additional two weeks on an appeal from aircraft lessors, allowing Avianca Brasil to keep operating its planes despite missed payments.
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India's Directorate General of Civil Aviation has de-registered 11 737-800s that had been leased by Jet Airways on request from lessors, the agency's website said, and another 14 requests for de-registration remain pending.
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Jet, which also owes vast sums to its lessors, pilots, fuel suppliers and other parties, stopped all flights from April 17 after its lenders, led by SBI, refused to extend more funds to keep the carrier flying.
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DAE, set up in 2006, became one of the world's largest aircraft lessors after acquiring Dublin-based AWAS last year, when it issued $2.3 billion in senior bonds split across three tranches, partly to finance the acquisition.
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Commercial jets make up 76 percent of Airbus revenues, which are mostly paid on delivery, while aircraft lessors, who control around half the global fleet, lose $10,000 a day for a late A320-family jet, experts said.
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Saddled with debt of more than one billion dollars, Jet has delayed payments to banks, suppliers, pilots and lessors - some of whom have ended lease deals with the airline before taking the planes out of the country.
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Asian lessors are investing billions of dollars to expand in a sector that offers long-term revenue in dollars, underscoring the importance of the region which already accounts for about 40 percent of the world's airline fleet.
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Industry sources expect Boeing, which faces Republican criticism over trade with Iran, to deal with Iran via foreign lessors or other financiers in order to avoid infringing core U.S. sanctions restricting use of the U.S. financial system.
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The regulator, known as ANAC, said it was acting at the request of one of various lessors involved in a festering legal dispute with Avianca Brasil, which filed for bankruptcy last month after falling behind with lease payments.
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Asian lessors are investing billions of dollars to expand in a sector that offers long-term and dollar-based revenue, underscoring the region's importance to an industry that makes up about 40 percent of the world's airline fleet.
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Jet has assured Indian authorities that no more planes will be grounded and that it is in talks with lessors to have a total of 75 planes back in the air by end-April from about 35 today.
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The 25-year-old airline has defaulted on loans after racking up over $1 billion in debt, and owes money to banks, suppliers, pilots and lessors - some of whom have started terminating their lease deals with the carrier.
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Asian lessors, led by Chinese banks, are spending billions of dollars to expand in the $228 billion global aircraft leasing sector that offers long-term revenue in dollars and accounts for some 40 percent of the world's airline fleet.
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Some of the sources from lessors and banks said HNA's flagship Hainan Airlines and smaller ones including Lucky Air and Capital Airlines had missed payments, while Tianjin Airlines was seeking to extend the term for payments due this year.
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Avolon, one of the world's biggest aircraft lessors, on Thursday applied to the DGCA to take two of its planes placed with Jet outside of India, making it the first to pull planes out on a non-consensual basis.
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Last week, in a letter to the prime minister seen by Reuters, its pilots union urged the government to intervene and speed up the bid process for the airline and stop the deregistration of its aircraft by its lessors.
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Several Jet pilots, who have not been paid for months, have switched airlines, and rival carriers like SpiceJet have been in talks with Jet's lessors to take some of its grounded planes on lease, a source has told Reuters.
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But higher oil prices could prompt several airlines and lessors to top up orders for fuel-efficient narrowbody models using the cash from industry restructuring, said IBA, one of a handful of companies which also carry out aircraft valuations.
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The airline was also forced to ground another six planes on Thursday due to non-payment of dues to lessors, Jet said in a statement, taking the total tally to 19 which is about 15 percent of its fleet.
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Aircraft leasing subsidiaries of China Construction Bank and Bank of Communications are rapidly expanding, while leasing units of Bank of China, Industrial and Commercial Bank of China and China Development Bank already figure among the top 15 global lessors.
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MUMBAI (Reuters) - Lessors to India's Jet Airways Ltd have applied to deregister another four Boeing Co 737 planes, the Indian aviation regulator said on its website on Wednesday, even as the embattled carrier seeks emergency funding from its lenders.
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At one point, the airline's usually jovial founder and chairman, Naresh Goyal, banged his fist on a table, jarring some of the lessors who had flown to Mumbai from Dublin, Singapore and Dubai, said one person who attended the discussions.
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Privately-held Wow air, which has been reducing the size of its fleet and said its cash flow was under pressure due to stricter terms from creditors and lessors, said it was looking at other opportunities but did not give details.
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The resolution plan was shared with the airline's lessors and vendors at a meeting chaired by State Bank of India and attended by the airline's senior management, including chairman Naresh Goyal and a representative of Etihad Airways PJSC, the report added.
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The Boeing 737 MAX 20203 will be launched at the Paris Airshow on Monday with the backing of at least two Chinese lessors - CALC and the aviation arm of China Development Bank, whose interest in the aircraft emerged earlier this week.
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Saddled with a billion dollars in debt, Jet Airways is struggling to make payments to its pilots, vendors and lessors, some of whom have forced the airline to ground over a dozen planes prior to potentially moving them out of India.
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The Boeing 737 MAX 10 will be launched at the Paris Airshow on Monday with the backing of at least two Chinese lessors - CALC and the aviation arm of China Development Bank, whose interest in the aircraft emerged earlier this week.
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NEW DELHI, April 3 (Reuters) - Jet Airways shares fell as much as 4 percent in early trade on Wednesday after it said the previous day it has grounded 15 more planes due to non-payment of dues to its lessors.
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"A lot of clients are trying to seek help from all the industrial players, not only from lessors but also from banks, from regulators, airports and OEMs (airplane manufacturers)," said Mike Poon, founder and chief executive of China Aircraft Leasing Ltd.
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But aircraft leasing subsidiaries of China Construction Bank and Bank of Communications (BOCOM) are rapidly expanding, while leasing units of Bank of China, Industrial and Commercial Bank of China and China Development Bank already figure among the top 15 global lessors.
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The week is expected to confirm demand for narrowbody jets from airlines such as Mexico's VivaAerobus, which is shopping for some 40 Airbuses, or lessors like Goshawk and Jackson Square, both seen interested in jets in the Boeing 737 MAX category.
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NEW DELHI/SINGAPORE (Reuters) - Some lessors of India's Jet Airways have begun terminating lease deals over unpaid dues and are preparing to move the leased planes abroad, escalating a crisis for the carrier, five sources with knowledge of the matter told Reuters.
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That means airlines must adapt to a forest of norms required by manufacturers, investors, lenders, lessors and regulators, said Mark Tierney, director of Crabtree Capital, which provides strategic advice and transaction execution services for airlines, aircraft and engine-leasing companies and financial institutions.
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SINGAPORE (Reuters) - Dublin-based AWAS has been put up for sale by its private equity owner in an auction that could value the aircraft lessor at $7 billion, including debt, and draw bids from Chinese lessors and other Asian investors, sources said.
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SINGAPORE (Reuters) - Papua New Guinea's Air Niugini is looking to replace its entire fleet of 25 planes in the coming years and has sought information from manufacturers and lessors about options before launching a formal tender, its managing director said on Friday.
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New Asian lessors are also emerging, with Bohai Capital, the leasing arm of aviation-to-shipping conglomerate HNA Group, which purchased Avolon Holdings Ltd, planning to add 300 to 523 planes to the over 500 it has on order and in service.
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The funds would come as a huge relief for the airline that is in dire need of money to pay off debt, pilots and aircraft lessors as it also grapples with competition from budget rivals, high oil prices and a weaker rupee.
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CIT's commercial air unit is one of the world's top 10 lessors with 331 aircraft - an attractive target particularly for Chinese firms whose enthusiasm for the $228 billion global aircraft leasing market has climbed in tandem with rapid growth in Chinese air travel.
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SINGAPORE/BENGALURU (Reuters) - International lessors have grounded more Jet Airways planes prior to potentially moving them out of India, as scepticism builds whether a state-led bailout of the carrier can clear their dues on time, sources familiar with the matter said.
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The Chinese lessors can be hampered by a lack of management talent, experience and industry connections - ties which can smooth over everything from marketing a plane once a lease comes to an end, to lessening the impact of a client airline's bankruptcy.
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One leasing industry executive said though there were some concerns about Chinese outbound investments, the sector was seen as strategic to China and as long as interest in Asia Aviation Capital was from lessors, this was unlikely to affect the sale process.
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"Many of these companies will survive a temporary drop in demand, but we do expect to see some consolidation in the industry where smaller regional carriers or lessors with fewer client portfolios head into distressed territory," said another Hong Kong-based loans banker.
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DUBLIN (Reuters) - Chinese aircraft lessors are investing heavily to build up their asset management skills to match their financial firepower as they try to take on U.S. and European leasing giants, senior executives in the sector said at a conference on Thursday.
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Engines made by CFM, a joint venture between GE and Safran, power around 13,400 single-aisle aircraft and the International Air Transport Association (IATA) hopes the deal will benefit IATA, CFM's airline customers, lessors, and third-party maintenance providers and parts makers.
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SINGAPORE/NEW DELHI (Reuters) - In early January, Jet Airways and its main lender, State Bank of India, met with aircraft lessors to assure them there was a plan to rescue the debt-laden carrier so it could pay them, sources familiar with the matter said.
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About six lessors are expected to apply to the Directorate General of Civil Aviation (DGCA) to de-register up to 15 planes that have already been grounded, over the next 10 days, one of the sources with direct knowledge of the matter told Reuters.
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SAO PAULO, April 8 (Reuters) - A Brazilian appeals court ruled on Monday in favor of several Avianca Brasil lessors, granting them the right to repossess over 15 planes, legal records show, amid a renewed push to retrieve the Airbus jets from the struggling airline.
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Though the aviation financing environment remains strong, the sources said Malaysia Airlines' poor operating performance and a forced haircut taken by banks and lessors on finance and operating leases during the airline's restructuring could make some banks wary of a financing deal with the carrier.
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The Avianca Brasil lawyer, who spoke on condition that he not be named, also said that the aircraft lessors had agreed to grant the airline 15 more days to operate the planes while the two parties try to reach a deal on delinquent lease payments.
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Aircraft leasing magnate Steven Udvar-Hazy earlier this week said new Asian lessors that had come to the market in recent years tended to have impressive financial resources, but lacked key skills in remarketing old aircraft and assessing values of planes coming off leases.
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"Technically there was no legal way to fly to Iran, so U.S. lessors tended to say no, or it caused a lot of angst in the U.S. leasing community that these planes were being flown there," said Epstein, who advises aviation leasing firms on sanctions issues.
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SINGAPORE, Jan 30 (Reuters) - Airlines in Asia are seeing a big drop in bookings along with forced cancellations because of the coronavirus outbreak in China, and the impact could last for a few months, the head of Avolon Holdings Ltd, one of the top global lessors said.
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"Banks have a huge role to play here because there is about $450 billion of senior debt that the world's shipping banks and Chinese lessors grant to the sector and about 70,000 commercial vessels," Paul Taylor, global head of shipping & offshore with Societe Generale CIB, said.
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"I believe that GECAS sees opportunity in the market to sell aircraft with leases attached to new emerging lessors which allows them to generate profit on these specific transactions whilst also managing their asset and customer concentration risk," said Rob Morris, global head of consultancy at Ascend Flightglobal.
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AWAS, among the world's 10 biggest aircraft lessors, is the latest asset to come up for sale in the red-hot aviation leasing business where owners are cashing in on a surge in interest from cash-rich Chinese financial firms looking to boost returns amid a growing air travel market.
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The AirAsia sale process comes at a time when Dublin-based aircraft lessor AWAS has been put up for sale by its private equity owners in an auction that could value it at $7 billion, including debt, and has drawn interest from Chinese lessors and other Asian investors, sources have said.
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Goyal's emotional outburst and Jet's subsequent failure to pay up as promised may have pushed the relationship between the airline and its lessors to a breaking point, two other executives who were at the meeting said, prompting some to take the drastic step of pulling their planes from its fleet.
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The stake purchase by Orix will help its fully-owned unit Orix Aviation, which is already among the world's leading lessors, to expand its market share at a time when a flood of Chinese money has been shaping the $280 billion-strong leasing industry as a significant new asset class.
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SHANGHAI/SINGAPORE (Reuters) - Some airlines affiliated with China's HNA Group Co Ltd are delaying aircraft lease payments to lessors, and Export-Import Bank of China, which is a long-term financer of the group, has formed a team to handle the conglomerate's liquidity issues, several banking and leasing sources said.
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SHANGHAI/SINGAPORE, Jan 15 (Reuters) - Some airlines affiliated with China's HNA Group Co Ltd are delaying aircraft lease payments to lessors, and Export-Import Bank of China, which is a long-term financer of the group, has formed a team to handle the conglomerate's liquidity issues, several banking and leasing sources said.
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WIDE-BODY WORRIES On the civilian side, the air show is expected to confirm demand for narrowbody jets from airlines such as Mexico's VivaAerobus, which is shopping for some 40 Airbuses, and lessors like Goshawk, which ordered 20 A320neo jets on Monday but is also expected to be interested in 737 MAX.
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Jet has yet to receive a loan of about $217 million from its lenders as part of a rescue deal agreed in late March, and many of its lessors that had earlier grounded planes have in the last two weeks begun to de-register these planes, further eroding value in the airline.
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WIDE-BODY WORRIES On the civilian side, the air show is expected to confirm demand for narrowbody jets from airlines such as Mexico's VivaAerobus, which is shopping for some 40 Airbuses, and lessors like Goshawk, which ordered 20 A320neo jets on Monday but is also expected to be interested in 737 MAX.
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In a closed-door meeting at the Harold Pratt House, a mansion on Manhattan's Upper East Side, Boeing executives outlined its planned changes to controversial software that was implicated in the two crashes, as well as updates to pilot training and fielded questions from lessors and others in aviation finance, according to invitations seen by CNBC and participants in the meeting.
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"What we will see over the next couple of years is less start-up lessors, because there have been so many, but more institutional players wanting to put big chunks of capital to work in this industry, but they don't necessarily want to own an aircraft leasing company," said Slattery, who founded the Dublin-based company with fellow entrepreneur John Higgins in 2010.
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