Request Made by Lessors to Deregister 36 Go First Aircraft
In a dramatic turn of events, Go First, the Indian budget airline owned by the Wadia group, is facing severe challenges as lessors have sought the deregistration of a significant portion of its aircraft fleet.
Just days after the airline canceled all its flights due to financial constraints, lessors have submitted requests for the deregistration of 36 planes, with an additional 13 aircraft facing the same fate on Monday. This move comes while the National Company Law Tribunal (NCLT) is yet to make a decision on Go First’s petition for voluntary insolvency resolution proceedings.
Recognizing the urgency of the situation, Go First appealed to the NCLT for an expedited verdict, citing the lessors’ actions in deregistering the aircraft. The tribunal, understanding the gravity of the matter, has agreed to prioritize Go First’s request and review the case promptly.
The lessors have also approached the Directorate General of Civil Aviation (DGCA) to initiate the deregistration process for the additional 13 aircraft. This latest update was confirmed by the regulator on Monday. Earlier, the lessors had already applied for the deregistration of 23 of Go First’s planes, exacerbating the airline’s troubles.
The troubles for Go First began on May 2, when the company filed for voluntary insolvency resolution proceedings. On that day, Go First’s CEO, Kaushik Khona, revealed that out of the airline’s total fleet of 55 aircraft, 28 were grounded due to issues with Pratt & Whitney engines, while the remaining 27 planes were operational. However, since May 3, Go First has not operated any flights, leaving passengers stranded and the future of the airline uncertain.
DGCA against Go First
On Monday, the DGCA took further action against Go First, ordering the immediate halt of bookings and ticket sales, both directly and indirectly, until further notice. Additionally, the regulator issued a show cause notice to the airline under the relevant provisions of the Aircraft Rules, 1937, due to its failure to maintain safe, efficient, and reliable operations. A source within the DGCA confirmed these developments.
The show cause notice requires Go First to respond within 15 days, providing an explanation for the issues raised by the regulator. Based on the airline’s response, the DGCA will make a decision on whether to continue to Go First’s Air Operator’s Certificate (AOC), a crucial document allowing an airline to operate flights. The fate of Go First’s AOC will depend on the adequacy of the airline’s reply to the show cause notice.
Prior to these latest developments, Go First had already suspended the sale of tickets until May 15 and canceled flights until May 12. With the ongoing uncertainty surrounding the airline’s operations and the increasing number of lessors seeking deregistration of its planes, the future looks bleak for Go First. The NCLT’s decision on the voluntary insolvency resolution proceedings and the DGCA’s evaluation of the airline’s response to the show cause notice will play pivotal roles in determining the fate of Go First in the coming days.
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