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The fate of Go First hangs in the balance as stakeholders navigate complex legal and financial considerations.
The Airports Authority of India (AAI) has been tasked with liaising with the lessors regarding the export of aircraft and ensuring compliance with airworthiness standards, as per the High Court’s directives.
The Delhi High Court issued directives to the Directorate General of Civil Aviation (DGCA) to proceed with the deregistration of leased aircraft belonging to GoFirst.
The court wants this done within five days. The DGCA and the Airport Authority of India (AAI) have to help the leasing companies in getting these planes out of Indian airports.
Justice Tara Vitasta Ganju dismissed the Resolution Professional’s (RP) request to delay the enforcement of the order, leaving Go First vulnerable to losing all 54 of its aircraft unless a stay order is obtained promptly.
This decision follows a legal battle initiated by aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation, and SMBC Aviation, who petitioned the court seeking the release of planes leased to the financially distressed airline, as reported by Money Control.
The court’s decision effectively nullifies previous communications from the DGCA, dating back to May 2023, which had informed lessors that their applications for deregistering aircraft were on hold due to Go First’s entry into a moratorium.
As outlined in the court’s order, the RP has been mandated to provide up-to-date maintenance details of the aircraft to the lessors. Furthermore, the Airport Authority of India (AAI) is now tasked with liaising directly with lessors regarding the export and airworthiness of the equipment.
Lessors who opt against exporting their aircraft are granted the option to petition the court for appropriate action. Additionally, the RP has been prohibited from accessing the aircraft henceforth.
Initially, the DGCA cited the moratorium as grounds for its inability to deregister the aircraft. However, a significant development occurred in October 2023 when the Ministry of Corporate Affairs issued a notification clarifying that aviation leases were exempt from the moratorium provisions under the Insolvency and Bankruptcy Code, 2016 (IBC).
In response to the ongoing litigation, bids for Go First were submitted by two distinct entities: a consortium led by SpiceJet chief Ajay Singh and Nishant Pitti’s Busy Bee Airways, and a separate bid from Sharjah-based Sky One. The former consortium proposed a bid of Rs 1,600 crore ($193.10 million) for the airline.
GoFirst entered the insolvency resolution process in May last year following its voluntary application for insolvency.
