The drama involving Chennai based Paramount Airways and GE Commercial Aviation Services (GECAS) over a dispute on refunds and payments, began last Friday.
Paramount officials explained that the dispute with GECAS was over maintenance reserves and deposit refund. An airline release claimed
“Paramount had made a $15 million deposit to GECAS – $5 mn as deposit and $10 mn as maintenance reserves. The dispute had arisen as Paramount asked for a reimbursement of the maintenance reserves created on various checks carried out. The lack of response from GECAS led to the dispute.”
On Friday, at the request of GECAS, India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), de-registered three of the five aircraft in the Paramount fleet leading to major disruptions from Saturday.
Four-year-old Paramount, is a niche airline with a market share of about 2%, largely flying within southern India. The aircraft de-registered were all Embraer ERJ-175SR (ERJ-170-200SR) VT-PAD, VT-PAE and VT-PAF and were part of a lease agreement entered in to in July 2005.
The actions were taken despite the fact that the airline had won a case over the issue at the London High Court, which has stated
“The defendant is permitted to remain in possession of the aircraft and use them for all purposes permitted under the lease agreements”
Today, Paramount Airways, got a favourable court order from the Delhi High Court which has set aside the de-registration of the Paramount aircraft by the DGCA, allowing the resumption of flights using the three de-registered aircraft.
All Paramount flights are expected to fly on schedule from tomorrow.
This is the second time since last year the DGCA has de-registered aircraft at the behest GECAS which last year, confiscated three aircraft from Kingfisher Airlines claiming payment defaults.