Business Irish

Saturday 16 December 2017

Aircraft firm secures order for return of €10m jetliner

Tim Healy

A DUBLIN-based aircraft leasing company has secured a High Court order requiring a Spanish airline to hand over possession of a Boeing jet valued at more than $12m (€10.5m) now located at an airport in Spain.

Pembroke 717 Leasing Ltd secured the injunction yesterday against Quantum Air SA, an airline with offices at Alcobednas, Madrid, which was said to be in serious financial difficulties and no longer taking bookings.

The aircraft is said to have been idle at Palma de Mallorca airport since January 25 and there is concern about whether it is undergoing any maintenance and about the risk of it being seized in an effort to recover airport and other charges, the court heard.

Granting the injunction to John Breslin, counsel for Pembroke, Mr Justice Peter Kelly said it was an unusual application but he was satisfied, under the terms of the lease agreement for the aircraft, that the court had jurisdiction to grant the order sought.

He also granted liberty to the defendant to apply to the court at 48 hours notice.

Pembroke 717 is a special-purpose company incorporated here to lease Boeing 717 aircraft.

It is a subsidiary of Pembroke Capital Ltd, with registered offices at Lower Mount Street, Dublin.

Pembroke 717 is the owner and lessor of the Boeing 717-23S aircraft, which was leased to Spanish airline Aerolineas de Baleares SA in May 2001. The airline later changed its name to Quantum Air SA.

Pembroke said the aircraft was valued at $11.8m last December on a half-life maintenance condition basis. The valuation, Pembroke said, did not take into account the value of leases or other contractual arrangements.

It was claimed Quantum was obliged under the lease to pay rent generally of around $180,000 per month to Pembroke and was also obliged to pay maintenance reserves.

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Quantum first defaulted on payments in November last and by January 29 it owed Pembroke 717 some $800,000, it was claimed.

Quantum was previously owned by SAS AB (Publ) and its subsidiary Spanair Holding Sl but, under an agreement of January 2009, the share capital in Quantum was sold to a Spanish company Proturin SA.

It is claimed SAS AB guaranteed certain obligations of Quantum under the lease with Pembroke and that SAS AB had paid in full certain sums demanded under the guarantee.

The total amount due from Quantum on January 5, last, not taking into account payments received from SAS AB, was $600,759.

Irish Independent

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