Airlines

India Changes Airline Bankruptcy Rules, in wake of jet leasing dispute

According to a government notification made public on Tuesday, India has changed its insolvency rules to make leased aircraft released from an exclusion period that begins to apply when an airline declares bankruptcy.

This could help to resolve differences between the country’s bankruptcy laws and international leasing regulations. According to the notification, some provisions of the Indian Bankruptcy Code will not be applicable to transactions involving helicopters, aircraft, and their engines and frames.

EU Commission Urged to Introduce Passenger Protection Scheme Against Airline Insolvency(Opens in a new browser tab)

The notification comes at a time when Go Air’s lessors are involved in a legal dispute to reclaim their aircraft after the airline declared bankruptcy. Ramesh Vaidyanathan stated, “With this, India can hope to somewhat repair the reputation it has acquired as a risky country to lease aircraft and engines to.”

According to a source in the aircraft leasing business and an adviser to a global lessor, the Go First planes’ freeze would have an impact on new negotiations and force domestic airlines to pay larger deposits for leased planes or higher monthly rents.

Indian airline Go First declares bankruptcy and places the blame on this company.(Opens in a new browser tab)

The nation’s aviation secretary informed India in June that efforts were being made to address discrepancies between international aircraft leasing regulations and its domestic bankruptcy laws.

According to those engaged in the issue, during court procedures where the foreign lessors are attempting to reclaim their planes, it is likely that the implications of Wednesday’s announcement on the Go First case will be analyzed.

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Airlines

A Costly Mistake: Passenger Pays for Fuel After Disruptive Flight

A Western Australian man has learned a costly lesson after his unruly behavior on a flight resulted in the aircraft having to turn back. The passenger was ordered to pay over $5,000 in fuel costs, along with a significant fine, for causing the plane to divert.

The incident occurred in September 2023 when the man, who was not publicly named, became disruptive on a flight from Perth to Sydney. Due to his behavior, the pilot was forced to turn the plane around and return to Perth, which required dumping fuel to land safely.

The passenger pleaded guilty to charges of disorderly behavior and non-compliance with safety instructions. As a result, he was ordered to pay $8,630 to the airline to cover the cost of the wasted fuel and was also fined $6,055. This combined penalty of over $11,000 is a stark reminder of the severe consequences of disruptive behavior on flights.

While this is not a typical punishment, other cases of in-flight misconduct have resulted in hefty fines. One passenger in the United States was fined over $40,000 for a series of offenses, including bringing their own alcohol on board, being intoxicated, attempting to smoke marijuana, and sexually assaulting a flight attendant.

The Australian Federal Police emphasized that disruptive behavior on flights will not be tolerated. They warned that individuals who cause disturbances can face significant financial penalties and legal consequences. The case of the Western Australian passenger serves as a clear message that obeying airline staff and adhering to safety regulations is essential for a smooth and safe flight.