A DUBLIN-BASED aircraft leasing company has secured a High Court order requiring a Spanish airline company to hand over possession of a Boeing aircraft valued at over $12 million (€8.6 million) now located at Palma de Mallorca 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 the Spanish airport since January 25th and there is concern about whether it is undergoing any maintenance and the risk of it being seized to recover airport and other charges, the court heard.
Granting the injunction to John Breslin, 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, 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, a special-purpose company incorporated here to lease Boeing 717 aircraft, 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 leased in May 2001 to Spanish airline Aerolineas de Baleares SA which later changed its name to Quantum Air SA.
Pembroke said the aircraft is a valuable asset valued at $11.8 million last December on a half-life maintenance condition basis which 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 of about $180,000 per month to Pembroke and maintenance reserves.
Quantum first defaulted on payments in November and, by January 29th, owed $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 SAS AB had paid in full certain sums demanded under the guarantee.
The total amount due from Quantum on January 5th, not taking into account payments from SAS AB, was $600,759. Pembroke claims it served a lease termination notice on Quantum on January 15th and asked it to deliver the aircraft to an airport in Sardinia, Italy. Quantum had disputed the validity of that termination notice and had since engaged in delaying tactics, it was claimed. It was also alleged Quantum had grounded its fleet of five aircraft on January 25th.
Proceedings had also been brought against Quantum in the English courts over other aircraft leasing arrangements, the court heard.