There have been several appeals filed with Indian courts related to issues with Go First’s bankruptcy. Lessors whose planes are stuck with the airline are particularly unhappy and have asked to be allowed to at the least inspect the aircraft, if not repossess them. This was challenged by Go First, nevertheless it was turned down, with the court allowing the carrier’s lessors to perform inspections usually.
Lessors allowed to examine aircraft
The Delhi High Court has dismissed Go First’s appeal difficult a previous order allowing its lessors to perform aircraft inspections. In the beginning of this month, a single-judge bench of the Delhi High Court had given permission to Go First’s lessors to examine and perform maintenance work of Go First’s 30 aircraft inside three days.
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The lessors were authorized to conduct maintenance tasks on the engines and components of all aircraft twice a month. Go First’s resolution skilled had challenged this in court, which has been rejected.
The counsel representing the lessors argued that the aviation regulator, the DGCA, mustn’t consider the airline’s application until the ultimate hearing begins on August third.
Lessors unhappy
Go First’s lessors have maintained from the start that the airline mustn’t be permitted to retain its aircraft under the current circumstances. They’ve highlighted the expiry of the lease agreement and said that the Corporate Insolvency Resolution Process (CIRP) cannot arm-twist them into the renewal of the lease contract.
Corporations which have leased their planes to Go First include Pembroke Aircraft Leasing 11, SMBC Aviation Capital, Accipiter Investments Aircraft 2, Eos Aviation 12 (Ireland), DAE SY 13 Ireland, and SFV Aircraft Holdings Ire 9 DAC Limited, amongst others.
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These leasing firms are frightened that the worth of their aircraft stuck in India is diminishing each day, because of which they’re suffering significant losses.
Recently, the court had also asked Go First to not remove any aircraft parts, putting it in a difficult position because it prevents it from carrying out any procedures that require changing certain parts if mandatory.
Repercussions
This whole thing has affected India’s perception amongst aircraft leasing firms. It has been reported that the Aviation Working Group (AWG), a non-profit entity comprising among the world’s biggest aerospace firms and stakeholders, has issued a “watchlist notice” under the Cape Town Convention compliance index, potentially affecting India’s rating.
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India continues to be a crucial marketplace for aircraft lessors. But with Jet Airways going bust in 2019, coupled with Go First’s current crisis, it has the potential to shake lessor confidence when coping with airlines in India. Nilaya Varma, Co-Founder & CEO, Public Policy Realization, Primus Partners, told Easy Flying,
Interestingly, India’s Ministry of Civil Aviation (MoCA) proposed a brand new law last 12 months that may work within the interest of international aircraft leasing firms in the event that they have to repossess and move airplanes in a foreign country.
The aviation ministry had asked for all stakeholders’ comments on the proposed laws called the Protection and Enforcement of Interests in Aircraft Objects Bill, 2022. It stays to be seen what the final result of that will probably be.
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