Go First Crisis: Aircraft Lessors Asks DGCA To Deregister 45 Of 55 Planes

This has added to already mounting problems for the airline the Wadia group-owned carrier. Earlier it was reported that lessors have so far sought the deregistration of 36 planes of Go First.

The Directorate General of Civil Aviation (DGCA) on Tuesday said that lessors of cash-strapped airline Go First have approached it to deregister 45 Go First Airways planes, reported news agency ANI. The airlines have a total strength of 55 planes. 

This has added to already mounting problems for the airline the Wadia group-owned carrier. Earlier it was reported that lessors have so far sought the deregistration of 36 planes of Go First. This follows a similar request made by leasing companies such as Sky High XCV Leasing Company, ACG Aircraft Leasing, and SFV Aircraft Holdings on Monday, asking for the return of at least 13 planes, as per the notices.

Go First Chief Executive Officer Kaushik Khona had told PTI that of the total 55 aircraft in its fleet, 28 planes were on the ground due to Pratt & Whitney engine issues and the remaining 27 were operational.

DGCA on Tuesday issued a show-cause notice to the airline for its failure to continue operations in a safe, efficient, and reliable manner. The aviation regulator had also asked them to stop selling any more air tickets with immediate effect until further orders. 

The DGCA has given GoFirst till May 24 to respond after which a decision will be taken by the regulator on GoFirst's Air Operator Certificate. The DGCA in its notice to GoFirst asked the airline why its AOC should not be revoked over "failure to continue ops in safe, efficient & reliable manner".

In a statement, Go First said it will respond to the DGCA's show cause notice in "due course".

"To reduce the inconvenience to the passengers, we had already stopped taking bookings, before the DGCA issued the notice," Go First said, adding that the airline is taking all possible measures to reduce passenger inconvenience.

The DGCA has asked the airline to submit its reply within 15 days of the receipt of the show cause notice, and further, a decision on the continuation of its Air Operator's Certificate (AOC) will be taken on the basis of the reply submitted by it.

The National Company Law Tribunal (NCLT) will give an order on the Go First airline insolvency plea on Wednesday, according to a notice on the tribunal's website. 

The NCLT reserved its order on May 4, after hearing arguments from the Wadia group-owned airline and its aircraft lessors, who have contested a petition seeking interim protection. With liabilities worth Rs 11,463 crore and a financial crunch, the airline has sought voluntary insolvency resolution proceedings. 

Go First, which has been flying for more than 17 years, stopped flights on May 3 amid a financial crunch caused by the grounding of more than half of its fleet due to the non-availability of Pratt & Whitney engines.

The airline canceled all its flights till May 12 and suspended the sale of tickets till May 15.