GO FIRST'S LEASED PLANES WILL BE DEREGISTERED IN FIVE DAYS: HIGH COURT ORDER

Indian budget carrier Go First is in jeopardy of losing its entire fleet of leased aircraft after the Delhi High Court directed the Directorate General of Civil Aviation (DGCA) to process deregistration applications. The airline has a limited window of five working days to obtain a stay on the order, failing which lessors will be able to reclaim their 54 airplanes.

This decision stems from legal action initiated by lessors following Go First's entry into insolvency proceedings in May 2023. While a standard moratorium typically applies during insolvency, an October 2023 ruling specifically exempted aircraft leases. The DGCA has acknowledged this exemption's applicability to the Go First case but has sought further court guidance before proceeding.

The court's order also mandates additional communication channels between Go First's resolution professional, the Airports Authority of India, and the lessors to facilitate the potential return of the aircraft.

Background

• Aircraft lessors, including Pembroke Aviation and SMBC Aviation, filed a suit seeking the return of their airplanes.
• Go First is currently undergoing insolvency resolution, with bids from a consortium led by SpiceJet and Sharjah-based Sky One under consideration.

This development significantly heightens the pressure on Go First to secure an insolvency resolution plan. Failure to do so within the stipulated timeframe could result in the airline losing its operational capacity.

Also read: Go First gets 60 more days to complete resolution process despite objections by aircraft lessors