LUFTHANSA HAS terminated its strategic alliance with private Indian carrier Modiluft, and wants to repossess three leased aircraft. The German airline is now discussing an alliance with other Indian carriers.

Dieter Heinen, Lufthansa's senior vice-president for Asia Pacific, has taken the "unavoidable decision" after claiming that Modiluft failed to meet its financial commitments. Before the move, the two held numerous rounds of negotiations, and repeated warnings and deadlines were given to Modiluft about its obligations.

Modiluft chairman SKModi denies any breach of contract, says that Modiluft owes no money to Lufthansa, and accuses the German airline of being in breach of contract. "There is no disruption of operations," he says.

Modiluft started in 1993 with a fleet of Boeing 737-200s leased from Lufthansa, operating domestic services from its base in Delhi. Lufthansa also technical support, training and management services.

Indian cargo operator Elbee Airlines is seeking to expand its fleet from three Fokker F27s tonine aircraft. The Bombay is to acquire three Boeing 727s, and may add three McDonnell Douglas DC-10s or Airbus A300/A310s later.


Source: Flight International