Go First filed for insolvency with the National Company Law Tribunal
New Delhi:
The lessors of 20 planes to bankrupt airline Go First have asked the aviation regulator DGCA to write them off and return them.
The General Directorate of Civil Aviation (DGAC) has published the contact details of lessors and their requests on its website.
By law, the DGCA must deregister an aircraft within five working days once a lessor sends a request to do so and publish the details on its website, people familiar with the matter told NDTV. case.
This development marks a turning point for the airline belonging to the Wadia group which has filed for insolvency with the National Company Law Tribunal (NCLT).
The airline in a statement on Tuesday, while announcing the grounding of all flights, said it intended to return to the air soon once their issues were resolved, particularly the issue of spare engines leased from the airline. American company Pratt & Whitney.
Go First alleged that the US company failed to deliver on its engine supply, which forced the airline to ground 50% of its Airbus A320neo fleet and subsequently all operations.
But donors asking Go First to return the 20 planes risk deepening the crisis and pushing Go First into a trench of bankruptcy from which exit would be extremely difficult, if not impossible.
At NCLT, lessors today opposed Go First’s request for voluntary insolvency and a moratorium on its financial obligations.
The NCLT heard the case for nearly four hours, after which it adjourned the proceedings.
Lawyers for Go First said the request for voluntary insolvency and a standstill was not intended to avoid paying dues to creditors but to save the company, news agency PTI reported.
Lawyers confirmed that the airline’s bank guarantees were being cashed and that it had received notices to terminate aircraft leases.
The airline has liabilities worth Rs 11,463 crore and has canceled all flights until May 9 and halted ticket sales until May 15.