Summary
- Go First’s lessors have applied for deregistration of their aircraft. They’re unhappy with limitations placed upon them following the bankruptcy proceedings.
- The Indian aviation regulator has received applications from lessors to deregister Go First’s entire fleet of 54 aircraft.
- Go First will reportedly have to sign fresh lease agreements for 30-35 aircraft, as many lessors terminated agreements before the airline’s insolvency.
Whilst Go First attempts to restart operations, its aircraft lessors are skeptical of the long run and have applied for deregistration of their aircraft. The airline is attempting to retain as many aircraft and even employees to be ready to fly again. While the bankruptcy proceedings have given it some respiration space, the lessors aren’t too joyful with the restrictions placed on them.
Aircraft deregistration request
India’s Ministry of Civil Aviation informed the Council of States that the Indian aviation regulator, the DGCA, has been approached by Go First lessors to deregister its entire fleet of 54 aircraft. The ministry stated,
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Under Irrevocable Deregistration and Export Request Authorisations (IDERA), the DGCA should ideally deregister aircraft inside five days for cases corresponding to the default of lease rentals. Thus far, five Go First aircraft have been reportedly deregistered.
The insolvency plea by Go First has granted the carrier a moratorium on aircraft, something that its lessors should not joyful about. Authorities and courts are presently coping with the matter at the same time as Go First is busy planning its flight resumption plans.
Recent leases
Meanwhile, a report by Mint highlights that Go First can have to sign fresh lease agreements for around 30-35 airplanes as lessors for these aircraft terminated the agreement before it filed for insolvency. The report quotes a source as saying,
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Indeed, it’s important that Go First gets the lessors on board to sign fresh lease agreements, as without that, it won’t have the opportunity to fly those aircraft. It is usually needed to even secure insurances, which may be tricky with out a lease contract in place.
Tussle
The road to flight resumption for Go First remains to be affected by hurdles. Amongst them are the continued issues with its lessors, who’ve now approached higher authorities to take heed to their concerns, that are primarily related to the condition of their aircraft and pending payments.
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 very least inspect the aircraft, if not repossess them.
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This was even challenged by Go First, but promptly rejected, with the court allowing the carrier’s lessors to perform inspections commonly. Hopefully, Go First will have the opportunity to persuade all stakeholders and get them on board for a successful business restart.
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