Go First filed for bankruptcy in May 2023. Since then, the lessors of these aircraft have been locked in a fierce battle with the former owner of the airline, lenders, and the resolution professional to take control of their aircraft.
The Delhi High Court, on April 26, directed the DGCA to deregister planes leased to Go First within five working days, providing much-needed relief to the lessors. With the civil aviation regulator complying with the court order and deregistering the planes, the lessors now have the opportunity to reclaim their aircraft. So far, the resolution professional of Go First has not contested the Delhi High Court order.
Nitin Sarin, managing partner at Sarin & Co, which also represented lessors during the court cases, told Business Standard that the DGCA’s action is “a very welcome step and that, coupled with the excellent HC judgment, will really help India redeem itself from the damage caused to the country’s reputation by Go First.”
At an aviation event in February this year, global aircraft and engine lessors expressed deep frustration, using terms such as “scarred”, “burnt”, “egregious”, and “yellow light of caution”, over their inability to repossess their planes (and engines) from Go First due to ongoing court cases.
Go First ceased flight operations on May 3, 2023, following the submission of an insolvency application to the National Company Law Tribunal (NCLT). On May 10, 2023, the tribunal imposed a moratorium on the airline’s assets, effectively preventing the lessors from reclaiming their aircraft (and engines on them) from the carrier. This decision had left them profoundly discontented.
The DGCA’s decision to deregister all Go First planes raises further questions about the ongoing resolution process of the airline. Sharjah-based aviation company Sky One has submitted a bid for the airline. Additionally, a joint bid has been placed by SpiceJet promoter Ajay Singh and EaseMyTrip founder & CEO Nishant Pitti-backed Busy Bee.
First Published: May 01 2024 | 8:37 PM IST
