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The CE of KLM, the Dutch arm of Air France-KLM, said on Wednesday he expects “some form” of recovery in 2021, but the short term outlook for a recovery in passenger traffic remains weak amid the coronavirus pandemic. “We expect some form of recovery, both on the European network side as well as the intercontinental side,” Pieter Elbers said during a live-streamed interview with Centre for Aviation. Elbers said the company is currently operating at 40-50% of capacity. <br/>

SMBC Aviation Capital has joined the list of lessors that are suing Garuda Indonesia over unpaid aircraft lease rentals. The Indonesian flag carrier discloses in its Q3 results announcement that the lessor filed a lawsuit in a London court on 12 August regarding outstanding aircraft lease payments. “As at issuance of the consolidated financial statement date [5 November], the trial is currently ongoing at [a] London court. In parallel the company keep[s] negotiating with SMBC, to reach [a] commercial deal and contract restructuring outside court,” Garuda says. Helice Leasing and AerCap are also taking legal action against Garuda. On 27 March, Helice successfully applied to the Dutch courts to seize collateral for funds in Garuda’s account in Amsterdam. Later, French authorities on 29 May granted Helice’s request to seize the guarantee amounts from the carrier’s account, in relation to aircraft lease payments not made. Helice has “filed a lawsuit of merit claim against Garuda in the London court and the trial is currently ongoing”, Garuda says. In addition, AerCap on 14 May filed a lawsuit in a London court over unpaid lease rentals. As with SMBC Aviation Capital, Garuda says it is negotiating with Helice and AerCap to reach a “commercial deal” and to restructure contracts outside of court.<br/>