The decision comes after the Delhi High Court order dated March 15, 2013. ILFC says that it is not late for India to recover positive perception in the international forum.
ILFC had leased 6 aircraft to KFA and though the move is a pragmatic approach is comes in an environment seen as to increasingly hostile to business by foreign investors.
The change in current policy in India towards lessors is a much needed reform and will help Indian airlines get continued, affordable aircraft finance.
Financiers have warned that failure to resolve the dispute could starve India of funds needed to develop its aviation industry.
In a response to CNBC-TV18, ILFC stated that it will not hesitate to take legal action if KFA goes to court. "If KFA is not in a position to pay penalties, then we will appoach its parent company and will pursue every legal avenue to ensure KFA pays penalties. The penalties were levied as KFA stopped making payments to ILFC. We expect to recover the rest of the aircraft within the next few weeks."
(With inputs from Reuters)
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