Indian low-cost carrier Go First is fighting hard not to hitch the infamous list of airlines which have gone under in India in the previous couple of years. The airline is reportedly working on a comeback strategy, and retaining its planes was a serious condition for it to aim flight resumption. Thankfully, it has been granted permission to maintain its aircraft for now, a move that has not made its lessors very blissful.
Go First granted protection from aircraft repossession
The National Company Law Appellate Tribunal (NCLAT) has released an order in favor of Go First, stopping lessors from claiming their aircraft back. This provides a ray of hope to the cash-strapped carrier because it looks to seek out ways of restarting operations.
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The newest decision by the NCLAT was in response to the appeals filed by three of Go First’s lessors – SMBC Aviation Capital Ltd, GY Aviation, and SFV Aircraft Holdings – asking for its intervention. Considered one of the lessors – Accipiter Investments Aircraft 2 Ltd – even filed a writ petition before the Delhi High Court against the central government and requested to ask the DGCA to initiate the aircraft de-registration process.
Lessors not blissful
Naturally, aircraft leasing corporations engaged in business with Go First are unhappy with the choice. A lawyer appearing for the lessors argued that the leases for the carrier’s aircraft were terminated before the admission of the Section 10 Application, and Go First lost ownership of the aircraft for it to be granted any protection of such kind.
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Experts are wondering what this decision could do for the Indian aviation sector on the whole, as lessors are more likely to grow to be more cautious while leasing to Indian airlines. Mint quotes an industry official as saying,
Winning back confidence
Go First now has a window of opportunity to plan its comeback. Short on money and with half of its fleet grounded, flight resumption, if and when it happens, is more likely to be on a small scale. Whether the airline deploys its planes on popular tourist routes or starts with significant trunk routes stays to be seen.
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But one other challenge for the carrier is to win back the arrogance of its passengers and employees, each of which appear to be maintaining their distance from the airline for now. Reports of Go First pilots and cabin crew searching for opportunities elsewhere have surfaced currently, and passengers are also more likely to think twice before purchasing a ticket.
The carrier must act fast to formulate a successful comeback strategy — one which is convincing enough for its customers, staff, and the industry on the whole. Clearly, the airline’s top management has some busy days ahead.
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