DAE Capital and Wells Fargo Trust Services sent default letters to Air India (AI, Delhi International) over the last few weeks, the Business Standard has reported. Three banks also warned that the flag carrier is turning into a non-performing asset.
The two lessors reportedly demanded immediate payments for overdue leases.
According to the ch-aviation fleets module, DAE currently leases nine ATR 72-600s to Air India's regional subsidiary Alliance Air (India) (9I, Delhi International). Wells Fargo does not lease any aircraft to the carrier but might have been involved in the financing or provision of trust services for some of the carrier's aircraft.
Air India currently owns some INR18 billion rupees (USD263 million) to various vendors, including banks and lessors, Reuters has reported.
The carrier expects to clear its debts as soon as it receives a new bailout from the government, which is expected to happen by August 15, 2018.
This fiscal year alone, the airline asked the state for INR21.21 billion rupees in equity to repay its debts, of which it has so far received INR6.5 billion to meet its urgent operational expenses. At the end of July, the government asked the parliament for approval of an additional INR9.8 billion injection into the carrier. Over three years leading up to 2017, the state injected a total of INR75.7 billion into the ailing airline.
The Indian government tried to sell a 76% stake in the carrier to a private investor earlier this year but received no bids. Afterwards, it pledged to keep financing the airline for the time being.
