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Finally! Some relief for Go First lessors after Delhi HC allows them access to aircraft

Finally! Some relief for Go First lessors after Delhi HC allows them access to aircraft

A Delhi High Court Bench has directed the civil aviation regulator DGCA and the concerned airport authorities to permit the lessors to inspect the 30 leased aircraft within the next three days

The Bench further stated that the parties can move an application over any additional prayers or concerns The Bench further stated that the parties can move an application over any additional prayers or concerns
SUMMARY
  • The lessors shall be given access to their aircraft at least twice a month by DGCA and the concerned airport authorities to carry out interim maintenance
  • The Bench has barred Go First and the Insolvency Resolution Professional (IRP) from removing, replacing or taking out any part or manuals of the aircraft except with the prior written approval of lessors
  • The LCC had applied for a “voluntary bankruptcy resolution” with NCLT on May 2, claiming that technical glitches with next-generation engines supplied by P&W had hit normal operations

In a first relief for lessors of the now-suspended low-cost carrier (LCC) Go First, a Delhi High Court Bench has allowed them access to their aircraft.

The single-judge Bench of Justice Tara Vitasta Ganju on Wednesday directed the civil aviation regulator Directorate General of Civil Aviation (DGCA) and the concerned airport authorities to permit the lessors to inspect the 30 leased aircraft with the Mumbai-headquartered LCC within the next three days.

The lessors shall be given access to their aircraft at least twice a month by the DGCA and the concerned airport authorities to carry out interim maintenance till the final disposal of the writ petition, the bench said.

The Bench barred Go First and the Insolvency Resolution Professional (IRP) from removing, replacing or taking out any part or manuals of the aircraft, except with the prior written approval of the concerned lessor.

The Bench further stated that the parties can move an application over any additional prayers or concerns.

“After facing closed doors at other forums, the lessors have got the much-needed respite from the directions issued by the Delhi High Court. They will now have access to their multi-million-dollar assets to carry out necessary maintenance,” said Salil Arora, founding partner at the law firm AviLeague Partners, adding, “Further, GoFirst or its IRP are now prohibited from removing any parts, spares or records from these leased aircraft, thus reducing the risk of cannibalisation.”

The next hearing is set to be held on August 3.

Earlier, with the apex arbitration panel National Company Law Appellate Tribunal (NCLAT) upholding the National Company Law Tribunal’s (NCLT’s) moratorium disallowing repossession of aircraft by Go First lessors, the clamour for India to align its laws with the international conventions and treaties on aviation has grown.

Lessors have been especially fearful of critical parts such as engines and landing gear from their aircraft on the ground getting cannibalised to operate flights by aircraft that are still airworthy.

Go First sent the global aviation industry into a tizzy after it applied for a “voluntary bankruptcy resolution” with NCLT on May 2, claiming that technical glitches with next-generation engines supplied by Pratt & Whitney (P&W) had hit normal operations leading to mounting losses.

The airline also announced the suspension of all flight operations from the following day.

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Published on: Jul 05, 2023, 4:33 PM IST
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