Go First: Operations Resumption Timeline Still Uncertain
According to the Directorate General of Civil Aviation (DGCA), Go First Airlines has recently clarified that they do not have a specific timeframe for the resumption of operations at this time. ANI reported that in response to the DGCA’s inquiry, the airline stated they have yet to determine a definite timeline for resuming their operations.
Earlier reports had suggested that the airline might resume its operations in May. However, Go First airline has not confirmed any specific dates for the resumption of their services.
On Monday, the insolvency proceedings against Go First were upheld by NCLAT, creating a hurdle for the airline’s lessors who are striving to reclaim their aircraft.
Several leasing companies, such as SMBC Aviation Capital, contested a tribunal’s decision that provided Go Airlines (India), commonly known as Go First, with bankruptcy protection earlier this month.
Go Airlines
The tribunal’s granting of bankruptcy protection included a moratorium on Go First’s assets and leases, adding to the challenges faced by the lessors. They had already submitted requests to India’s aviation regulator to retrieve a minimum of 42 Go First planes due to missed rental payments.
The financial difficulties of the airline have been attributed to issues with engines supplied by Pratt & Whitney, a company owned by Raytheon. These problems have resulted in the grounding of almost half of the airline’s fleet of Airbus A320 neos. Pratt & Whitney has refuted these claims, stating that they are baseless.
The appeals tribunal announced on Monday that the National Company Law Tribunal would be responsible for determining whether lessors who terminated their leases prior to the commencement of bankruptcy proceedings can reclaim their aircraft.
Despite this recent development, Mark Martin, CEO of Martin Consulting, an aviation consulting firm, emphasized that lessors cannot afford to overlook Indian airlines as potential business partners. He highlighted that India is an attractive market due to its status as the largest and fastest-growing aviation market globally.
However, lessors have cautioned that Go First’s bankruptcy has made India a ‘risky’ jurisdiction, which will inevitably lead to higher leasing costs for domestic carriers when negotiating new agreements.
Requests for comment from Go First Chairman Varun Berry and lessor SMBC Aviation Capital have not received an immediate response.
In the current month, numerous lessors have approached the Directorate General of Civil Aviation (DGCA) to request the deregistration and repossession of the 45 planes belonging to Go First.
Go First ceased operations on May 3.
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