TBM Staff - Mumbai
The Directorate General of Civil Aviation (DGCA) has taken action to deregister all 54 aircraft leased to the now-defunct airline Go First, as confirmed by officials. This move follows an order issued by the Delhi High Court on April 26.
Go First filed for bankruptcy in May 2023, sparking a complex legal battle among the lessors of these aircraft, the former airline owner, lenders, and the resolution professional. The Delhi High Court’s directive instructed the DGCA to deregister the leased planes within five working days, offering relief to the lessors. With the civil aviation regulator complying with the court order, the lessors now have the opportunity to regain control of their aircraft. So far, the resolution professional of Go First has not challenged the Delhi High Court’s decision.
Ajay Kumar, managing partner at KLA Legal, representing various lessors in court, described the DGCA’s action as a significant victory. However, he cautioned that the battle isn’t concluded until the aircraft are exported out of the country. Nitin Sarin, managing partner at Sarin & Co, echoed this sentiment, emphasising the positive impact of the DGCA’s move in restoring India’s reputation following the Go First debacle.
Global aircraft and engine lessors expressed frustration at an aviation event earlier this year, lamenting their inability to repossess planes and engines from Go First due to ongoing legal disputes. Go First ceased flight operations on May 3, 2023, after an insolvency application was submitted to the National Company Law Tribunal, which imposed a moratorium on the airline’s assets. This decision left lessors deeply dissatisfied.
The DGCA’s decision to deregister all Go First planes raises questions about the airline’s ongoing resolution process. Sky One, a Sharjah-based aviation company, has submitted a bid for the airline, while Ajay Singh, Promoter, SpiceJet and Nishant Pitti, founder & CEO, EaseMyTrip-backed Busy Bee have placed a joint bid.
