In a decisive move, the Indian high court has directed the Directorate General of Civil Aviation (DGCA) to deregister all 54 planes belonging to Go First, formerly known as GoAir, and hand them over to lessors. This decision comes as a significant blow to the defunct airline, further complicating its already tumultuous journey through bankruptcy.
The court also instructed the resolution professional (RP) overseeing Go First’s insolvency proceedings to furnish all relevant information regarding the airline to the lessors. Additionally, the airline has been barred from removing any documents or spare parts from the aircraft.
The deregistration of its entire fleet deals a severe blow to Go First’s prospects of revival, as it leaves the airline with little to sell as a going concern. This development casts a shadow over the ongoing bankruptcy process, with dim hopes of any successful revival in sight.
The lenders, grappling with the implications of this latest court order, are set to convene on Monday to chart out the future course of action.
India’s move to amend its insolvency laws in October, excluding leased aircraft from frozen assets, reflects an alignment with global standards in the aviation industry.
Go First, formerly GoAir, ceased its operations on May 3, 2023, citing operational challenges that had plagued its services for months. The airline claimed to have been with largely impacted by supply chain issues with Pratt & Whitney PW1000G engines, which powered its entire fleet of A320neo aircraft.
Facing mounting pressures, Go First voluntarily filed for insolvency resolution before the National Company Law Tribunal (NCLAT) on May 2, 2023. Since then, its journey through bankruptcy has been marked by legal battles and financial struggles.
As the fate of Go First hangs in the balance, stakeholders brace themselves for the outcome of Monday’s lender meeting.
