Nishtha Ganesh
The Delhi High Court dealt a final blow to any hopes of a revival for Go First by ordering the aviation regulator to deregister all 54 aircraft leased by the bankrupt airline, effectively grounding the 20-year-old low-cost carrier indefinitely.
Justice Tara Vitasta Ganju of the Delhi High Court directed the Directorate General of Civil Aviation to expedite the lessors’ deregistration applications within five working days. Additionally, the court instructed the DGCA and the Airport Authority of India to facilitate the lessors’ access to airports for the retrieval of their aircraft.
Mukesh Chand, senior counsel at Economic Laws Practice, noted the significant implications of the court’s decision, emphasising its role in upholding the rights of aircraft lessors and clarifying the deregistration process, setting a precedent for future disputes in the aviation sector.
However, aviation consultancy firm Martin Consulting’s chief executive, Mark Martin, cautioned that while the judgment may mitigate India’s leasing risk, it may not benefit Go First’s lessors immediately. He highlighted logistical challenges, such as the need to install over 100 PW-GTF engines to make the aircraft flyable, coupled with potential financial losses for the lessors.
Go First, formerly backed by the Wadia Group, filed for insolvency on May 2, 2023, and ceased operations the following day, attributing its financial woes to faulty engines supplied by Pratt & Whitney. The airline’s insolvency, accepted by the National Company Law Tribunal on May 10, 2023, triggered a moratorium period, delaying lessors’ deregistration applications.
Following concerns about the moratorium impeding aircraft repossession, several lessors approached the Delhi High Court seeking deregistration. The government’s subsequent notification exempting aircraft-related transactions from the moratorium further fueled the legal battle.
With the court’s latest ruling, bidders for Go First, including SpiceJet chairman Ajay Singh and Sharjah-based Sky One Aviation, are expected to reassess their options. Meanwhile, the court has imposed restrictions on Go First’s resolution professional and granted maintenance responsibilities back to the lessors, signaling a decisive turn in the airline’s fate.
