The recent directive from the Delhi High Court instructing the Directorate General of Civil Aviation (DGCA) to proceed with the deregistration of aircraft leased by Go First within the next five working days marks a significant development. While this decision presents a notable setback for Go First, it brings relief to the aircraft lessors who can now reclaim their assets following the airline's bankruptcy declaration nearly a year ago.
The court's order encompasses all 54 planes involved in the case, effectively prohibiting Go First from operating these aircraft. Consequently, the airline faces the imminent risk of losing all 54 of its aircraft, further diminishing any prospects of a potential revival.
The aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation, and SMBC Aviation, had initiated legal proceedings in May 2023 to seek permission to retrieve their planes. Initially, the DGCA cited a moratorium as a hindrance to releasing the aircraft. However, in October 2023, the Ministry of Corporate Affairs issued a notification clarifying that the rules of the Insolvency and Bankruptcy Code would not apply to aircraft-related agreements.
Subsequently, the DGCA asserted that this notification should also be applicable to cases similar to that of Go First. Nevertheless, the aviation regulator awaited the court's decision, as the matter remained under judicial review.
Meanwhile, amidst the legal proceedings, two bids were submitted for the acquisition of Go First. One proposal came from a consortium led by SpiceJet's chief, Ajay Singh, while the other originated from Sky One, based in Sharjah. Ajay Singh and Busy Bee Airways offered Rs 1,600 crore for the airline, although the lenders have yet to reach a decision on the bids.
