COSMIC AIR DISPUTE
Loss of Credibility
After a series of disputes over the payment and other issues with aircraft owners, Nepalese air operators have lost their credibility
By A CORRESPONDENT
Following the opening of Nepalese sky to private airlines, Nepalese air operators have confronted with a number of foreign aircraft leasing companies over the payment and ownership of aircrafts.
After years of negotiations, French Aircraft owner has just recently took back two ATR-42 grounded for years in the Tribhuwan International Airport . The ATRs were earlier used by now-dissolved Necon Air. Similarly, dissolved Nepal Airways and Everest Air had similar kinds of disputes with the aircraft owners.
Last week, Cosmic Air - another Nepalese airlines - had a major dispute with the company with whom it had leased two F-100 aircraft. However, the Cosmic hid behind an order by Appellate Court and has refused to hand over the two aircraft to the Irish company. In a country where judiciary is yet to have garnered enough expertise on the international leasing modalities of aircrafts, courts always find themselves in difficult positions whenever such petitions appear in the court. Cosmic Air had, recently, secured a stay order from Appellate Court regarding its dispute with aircraft owner – but the credibility of Nepal has suffered in the world.
AerCap Ireland Limited (formerly known as debis AirFrance Ireland plc), the owner of Fokker 100 aircraft, in its pubic notice said Cosmic Air Private Limited had “for some time been in default under the aircraft operating Lease Agreement which resulted in us terminating the leasing of the Aircraft 15 March, 2006. As a result of the termination of the agreement, Cosmic Air Private Limited has no authority to possess and operate the Aircraft anymore. Any operation of the above Aircraft will be the flagrant violation of the Aviation Law of the country and thus unlawful.” (See public notice in Gorkhapatra on April 2)
Following the notice, Cosmic Air Pvt. Ltd issued another rejoinder notice on April 3 in various newspapers regarding advertisement published by AerCap Ireland Ltd and AerCo Litd. “We, the Cosmic Air Pvt Ltd, would like to inform all concerned that the above stated notice with false allegation is misleading to the people. We, therefore, are in conformity and in adherence to the law of the Kingdom of Nepal and the order of the court in respect to the operation of the aircraft. It is further to inform that as the said act of publishing notice in the newspapers by AerCap and AerCo Ltd is misleading, defamatory, derogatory of our authorities and laws of our Kingdom and against our business repute of long standing.”
In the context to Nepalese law, the Cosmic Air has upper hand as it has already received an interim order from Appellate Court of Patan on 27 th February in relating to the aircraft operation. But, how will it challenge its points of view in international sector is yet to be seen. Because as per the international practice, the international law guarantees the owner’s right. The leasing agreement, as per the international law, relates only with the leasing operation and does not provide the ownership of the aircraft.
The disputes between the aircraft owner AerCap Ireland Ltd and Cosmic Air Pvt. Ltd appeared following delay of payment to the owner by Cosmic Air. Although Cosmic Air has leased four aircrafts from the company, two have already been grounded.
Whoever may prevail in the dispute, the advertisement war appearing in the newspapers will damage the credibility of Nepalese airlines industry. The past experiences have already made Nepal ’s credibility in the international trading and banking suffer hard. This new dispute will further erode the credibility of Nepalese Airlines and industrial houses.
