Go First Accepts High Court Directive, Prepares For Fleet Deregistration: Report

Lenders said that liquidation was the only viable recourse. They expressed concerns about financial losses, as the value of the airline's assets had diminished due to prolonged legal battles

Go First Crisis ( Image Source :Getty )

Financially troubled Go First Airlines has reportedly decided not to contest the Delhi High Court's directive instructing the Directorate General of Civil Aviation (DGCA) to deregister all 54 of its aircraft by Friday (May 3). Instead, the airline is moving towards liquidation, according to a Business Standard report citing sources. 

Lenders told the publication that the only viable recourse left was liquidation. They expressed concerns about financial losses as the value of the airline's assets had diminished due to prolonged legal battles.

“The resolution plan was submitted to revive the airline. The bids were submitted because they saw it as a going concern. With the aircraft deregistered, we are not sure whether it will remain one. Without the aircraft, there are only slots available. There is not much value,” an official of a bank that has exposure to Go First told the newspaper.

In response to an order issued by the Delhi High Court on April 26, the Directorate General of Civil Aviation (DGCA) deregistered all 54 aircraft leased to the now insolvent airline Go First on Wednesday. Advocate Diwakar Maheshwari, representing the Resolution Professional of the airline, had requested the court to temporarily suspend the order, but the court declined to do so.

This development appears to mark the conclusion of operations for the budget airline, which commenced commercial flights in November 2005, just 10 months before IndiGo's debut. Nonetheless, IndiGo has risen as India’s premier airline, controlling roughly 60 per cent of the domestic passenger market. With a fleet of approximately 370 aircraft, IndiGo holds the title of the world’s third-most valuable airline by market capitalisation.

In May 2024, Go First initiated bankruptcy proceedings. Subsequently, the lessors have engaged in a dispute with the airline's former owner, lenders, and the resolution professional in an effort to regain control of their leased aircraft.