GECAS commences proceedings against Kingfisher

This story is sourced from

GECAS, acting as servicer on behalf of Genesis Lease, commenced proceedings on 3 April in the UK High Court against Kingfisher Airlines for damages arising out of the repossession of two Airbus A320-200 aircraft, according to SEC documents filed by Genesis on 1 May.

In October 2008 the aircraft leases were terminated by GECAS. The following month the lessor repossessed the A320s, which were on lease to Deccan Aviation (now Kingfisher Airlines following an April 2008 merger).

Genesis says in the filing that it expects the claim to be heard in London in July, but admits the proceedings are at an early stage, "and it is not possible to predict the outcome at this time."

GECAS is seeking expenses related to repossessing the aircraft, revenues foregone due to aircraft downtime, expenses of preparing the repossessed aircraft into redelivery condition, and other associated expenses.

According to Wachovia, the two 1997-vintage A320s were released to Egypt's nascent Nile Air this week.