ILFC cannot get 2-3 leased Kingfisher planes until dispute is over

NEW DELHI, March 26 Tue Mar 26, 2013 5:58am EDT

NEW DELHI, March 26 (Reuters) - Aircraft lessor International Lease Finance Corp cannot remove 2-3 aircraft leased to Kingfisher Airlines until an ongoing litigation is over, India's aviation regulator said on Tuesday.

On Monday, ILFC had successfully removed one of the six aircraft stranded in India by a dispute over the suspension of operations at Kingfisher Airlines. It still has five A320 jets in India.

India will release most of the 17 de-registered leased planes operated by grounded Kingfisher, Director General of Civil Aviation Arun Mishra told reporters.

Kingfisher, controlled by liquor baron Vijay Mallya, has been halted due to a cash crunch. Lenders are trying to recover $1.4 billion of loans in default, but disagreements over who should take precedence have left jets stranded.

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