Court Orders Deregistration of Go First's Leased Aircraft: Setback for the Airline
The Delhi High Court's decision to order the deregistration of all aircraft leased by Go First, formerly known as GoAir, within the next five working days is a significant turning point for the airline. This ruling, while a setback for Go First, is a relief for its aircraft lessors who have been striving to reclaim their assets since the airline's bankruptcy declaration nearly a year ago.
The court's mandate, which includes the deregistration of all 54 aircraft involved in the case, not only prevents Go First from operating these planes but also severely hampers its hopes of a swift recovery. This development poses a significant threat to the airline's operational capabilities.
Entities such as Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation, and SMBC Aviation, who are among the lessors seeking reclamation of their leased aircraft, are demonstrating their determination by pursuing legal recourse. Their efforts underscore the complexity of the situation as they strive to recover their valuable assets entangled in Go First's bankruptcy proceedings.
Initially, the DGCA had cited a moratorium as a hurdle in releasing the aircraft. However, with the Ministry of Corporate Affairs clarifying that aircraft-related agreements are exempt from the Insolvency and Bankruptcy Code, the path was cleared for lessors to seek redressal through legal channels.
While the DGCA awaited the court's decision, the airline faced an uncertain future, with its fleet, the backbone of its operations, hanging in the balance. Now, with the court's directive to proceed with deregistration, Go First faces the imminent risk of losing its entire fleet, amplifying the challenges it faces in staging a comeback.
Amidst the legal proceedings, potential bidders, including a consortium led by SpiceJet's chief, Ajay Singh, and Sky One based in Sharjah, had expressed interest in acquiring Go First. However, with the airline's fleet now under threat, the landscape of its potential acquisition becomes even more uncertain, casting a shadow over its prospects.
