Just like everything else in this current bubble, we start to see the decay of local business all around. Not only local but we read about the massive layoffs going on day in and day out. Retail stores have been dropping like flies and there is no light at the end of the tunnel.
As an aircraft repossession expert having been through several recessions before, large aircraft companies are not immune, I can attest. Same goes for major cruise lines and other companies that some of us feel naturally as they are protected since they are so big, not the case.
The repossession orders come and we get the assets. If we have to unload 500 people in the Bahamas to do so, as long as its within our rights as a repossession company doing its job, they will be unloaded. If we have to take down a fleet of 737 jets scattered through the world, we are scattering and picking them up simultaneously whether in Istanbul or Orlando.
Its happening now, I can just feel it. This is happening in India today.
Avolon moves to repossess two 737s from Jet Airways
Avolon has applied to have two Boeing 737-800s leased to Jet Airways deregistered, in what appears to be the first repossession action taken against the distressed carrier.
Records from India’s Directorate General of Civil Aviation show that requests to deregister the aircraft – MSNs 34797 and 34798 – were submitted on 3 April. Their respective aircraft owners – Crolly Aviation and Mardel Aviation – lodged the requests.
Cirium’s Fleets Analyzer shows that the two jets were built in 2006 and are managed by Avolon. Both have been operated since new by Jet Airways, and are under finance from DVB Bank.
Under the country’s aviation regulations, the DGCA has five working days to deregister the jets, provided all registered interests in the aircraft have been discharged, or those with interests have consented to its deregistration and export. Jet Airways has disclosed that 70 of its aircraft grounded due to non-payment of lease rentals to lessor. All of its disclosures on aircraft groundings have said that lessors are supportive of its restructuring efforts.
Its last disclosure on 2 April, advising of the grounding of 15 aircraft, came just over a week after Jet indicated it would receive a Rs15 billion ($217 million) lifeline from its lending consortium, part of which had been earmarked to clear some of its lease dues. However, it appears that credit facility has not been advanced to the carrier.