It was a day of mixed emotions for everyone associated with cash-starved carrier Kingfisher Airlines (KFA). On one hand, shares of the company were trading higher on account of rumours of an international carrier Etihad picking up 48 per cent stake in the airline, on the other, reports suggested that five aircraft belonging to the carrier had been confiscated.
Agencies reported that four planes had been taken back by American leasing firm International Lease Finance Corporation (ILFC) while another one had been confiscated by the service tax department on account of defaulting tax payments to the tune of `63 crore.
In a letter dated December 7, the department had issued a notice for detention of one aircraft parked currently at the Mumbai airport. Reports suggested that the department seized the ATR aircraft and also that the airlines, owned by liquor baron Vijay Mallya, owes close to `190 crore to the department. Department officials also added that `127 crore of this amount was under litigation.
KfA, in its response, said that the aircraft (VT-KAR) was taken out on an operating lease. “Since the aircraft is purely on operating lease basis and KfA is only a lessee of the aircraft, it does not feature in the asset books of KfA,” the airline said.