Go First Lessors' Request To Repossess Planes On Hold, DGCA Tells Delhi HC: Report
In a court filing, the DGCA said that the bankruptcy process of cash-strapped Go Air imposes a freeze on assets that supersedes such requests
The Directorate General of Civil Aviation (DGCA) has told the court that Go First lessors' request for deregistration of their aircraft has been put on hold, reported news agency Reuters. In a court filing, the aviation regulator said the bankruptcy process of the cash-strapped carrier imposes a freeze on assets that supersedes such requests.
Go Airlines (India) Ltd has filed for bankruptcy protection, citing "faulty" Pratt & Whitney engines as the reason for grounding around half of its 54 Airbus A320neos. Pratt, a subsidiary of Raytheon Technologies, has refuted these claims, stating that there is no evidence to support them, the report noted.
Despite some lessors already terminating leases and requesting repossession of over 40 planes, the NCLT has ordered a freeze on Go First's assets as part of the granted protection.
Also Read: DGCA Denial To Deregister Aircraft 'Illegitimate', Go First Lessors Tell Delhi HC
On May 10, the National Company Law Tribunal (NCLT) granted permission for Go First to proceed with voluntary insolvency resolution proceedings. The NCLAT, on May 22, upheld the order issued by the principal bench of NCLT in Delhi, which had previously accepted Go First's plea for voluntary insolvency resolution and appointed an interim resolution professional (IRP) to suspend the company's board.
Several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First's 45 planes.
On May 26, a group of aircraft lessors of Go First presented their case before the Delhi High Court seeking the deregistration of their planes by the aviation regulator DGCA. The lessors told the high court that the denial of deregistration by the Directorate General of Civil Aviation (DGCA) is “illegitimate”.
Accipiter Investments Aircraft 2 Limited, EOS Aviation 12 (Ireland) Limited, Pembroke Aircraft Leasing 11 Limited, and SMBC Aviation Capital Limited are among the lessors who have approached the Delhi HC over the matter.
On Tuesday, Go First extended its flight cancellation until 4 June 2023, due to 'operational reasons'. It had earlier announced the suspension of flight operations until May 30.
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