Go First Planes Face Deregistration as Lessors Raise Alarming Concerns

Significant development has come to light in the ongoing financial turmoil within the aviation sector, as lessors have applied for the deregistration of 54 planes leased to Go First, a cash-strapped budget carrier in India. The Directorate General of Civil Aviation (DGCA), the country’s aviation regulator, is closely monitoring the situation since Go First ceased its operations and initiated a voluntary insolvency resolution process in May.

Minister of State for Civil Aviation, V K Singh, confirmed the news in a written reply to Rajya Sabha, the upper house of the Indian Parliament. He disclosed that the DGCA has received applications from lessors seeking to deregister the 54 leased aircraft in question. However, the processing of these applications is contingent upon the ongoing cases before the National Company Law Tribunal, Delhi, and the Hon’ble High Court of Delhi, due to the airline’s application for insolvency under the Insolvency and Bankruptcy Code 2016 (IBC).

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Ever since Go First announced the cancellation of flights on May 2 and entered the insolvency resolution process, the DGCA has been vigilantly overseeing the situation. Acknowledging the potential impact of the airline’s grounding on airfares and connectivity, the government has advised other airlines to self-regulate airfares and maintain reasonable pricing levels. Additionally, the government has encouraged airlines to introduce new flights on routes previously served by Go First, particularly those with a substantial number of flights.

It is worth noting that the situation with Go First is not an isolated incident. Minister V K Singh highlighted that the Indian Civil Aircraft Registry has removed a total of 358 leased aircraft from January 2018 up until the present date. This points to broader challenges faced by the Indian aviation industry, especially amidst economic uncertainties and the impact of the COVID-19 pandemic.

In a separate written response, the Minister clarified that airlines are presently not facing any parking issues at airports. The Airports Authority of India (AAI) currently provides 731 aircraft parking stands at its owned airports. The AAI and other airport developers continuously work to upgrade infrastructure, including the construction of parking stands, based on factors such as available land and traffic demand.

The deregistration of 54 aircraft leased to Go First may have far-reaching implications for the aviation industry, including potential changes in market dynamics and increased competition among other carriers. As the situation unfolds, the government, DGCA, and stakeholders in the industry will closely monitor the developments, ensuring the least possible disruption to air travel and the public. While the fate of Go First remains uncertain, it is hoped that measures will be taken to stabilize the industry and safeguard the interests of passengers and investors alike.

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