High Court Serves Showdown Notice to These Groups in Go First Case

In a significant development concerning the cash-strapped airline Go First, the Delhi High Court issued a formal notice to the aircraft lessors, its resolution professional, and the aviation regulator DGCA after the lessors opposed including lenders as parties in their deregistration pleas. The ongoing case has far-reaching implications for the airline’s future and the interests of various stakeholders involved. Let’s delve deeper into the details of the case.

Lessors’ Opposition to Lenders’ Inclusion

On May 26, aircraft lessors, including Pembroke Aircraft Leasing 11 Ltd, SMBC Aviation Capital Ltd, Accipiter Investments Aircraft 2 Ltd, EOS Aviation 12 (Ireland) Ltd, SFV Aircraft Holdings IRE 9 DAC Ltd, ACG Aircraft Leasing Ireland Ltd, and DAE SY 22 13 Ireland Designated Activity Company, approached the Delhi High Court seeking deregistration of their planes by the DGCA. Their goal was also to reclaim their aircraft from the financially troubled Go First airline.

However, the lessors vehemently opposed the lenders’ involvement in the proceedings, arguing that they were neither proper nor necessary parties. The issue of whether the lenders should be included as parties in the deregistration pleas required further examination, prompting the court to issue a formal notice.

Go Airlines’ Bankruptcy and Ongoing Restructuring

Go Airlines, which operates the Go First carrier, faced severe financial difficulties and had to file for bankruptcy protection in May. The airline cited “faulty” Pratt & Whitney engines as the reason for grounding approximately half of its 54 Airbus A320neos. Also, in response to the allegations, Raytheon-owned engine maker Pratt & Whitney denied any merit to the claims.

To address its financial crisis, the company recently invited investor interest in the airline through a court-appointed administrator. The deadline for submitting an expression of interest (EOI) to invest in the airline was set for August 9. Industry experts view this move as a critical step for the airline to secure the necessary funding and regain operational stability.

DGCA’s Approval and Safety Audit

Amidst the turmoil, the Directorate General of Civil Aviation (DGCA) recently granted approval for Go First’s plan to resume flight operations. However, this approval is subject to specific conditions to ensure safety and compliance with all applicable regulatory requirements.

The DGCA conducted a special safety audit from July 4 to July 6 to assess the airline’s readiness to resume operations. After conducting the audit, the DGCA has also permitted Go First to recommence flight operations, provided the airline meets all the necessary conditions.

The conditions set by the DGCA include maintaining the airworthiness of the aircraft involved in operations at all times. Furthermore, the airline must notify the DGCA promptly of any changes in the company that may impact the resumption plan submitted by the resolution professional.

Conclusion

Therefore, the Delhi High Court’s issuance of a formal notice to the lessors, resolution professional, and DGCA marks a crucial development in the Go First case. With the lessors opposing the inclusion of lenders as parties, the court’s decision will play a pivotal role in determining the outcome of the deregistration pleas and shaping the airline’s future.

However, the aviation industry and stakeholders alike will closely watch Go First as it continues to grapple with financial challenges, undergoes ongoing restructuring efforts, and potentially receives a new investment infusion. The DGCA’s safety audit and conditional approval for flight operations demonstrate the regulator’s commitment to ensuring the safety and compliance of the airline’s operations. For safety-related aviation products, go through the mall of aviation products. As the situation unfolds, all eyes remain on the Delhi High Court for further updates on this high-stakes legal battle.

Also, Read: Indian Aviation News