The Delhi High Court has directed the aviation regulator Directorate General of Civil Aviation (DGCA) to move on with the process of deregistering aircraft leased by Go First within the next five working days.
While this comes as a major setback for Go First, it offers relief to its aircraft lessors who can now reclaim their aircraft following the airline's declaration of bankruptcy almost a year ago.
It may be noted that the court has issued an order for the deregistration of all 54 planes involved in the case. Additionally, it has restricted Go First from operating these aircraft, added the report.
As things currently stand, the airline is at risk of losing all 54 of its aircraft, shattering any hopes of a comeback.
The aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation, and SMBC Aviation, had approached the Delhi High Court in May 2023 to ask for permission to reclaim their planes.
Initially, the DGCA said it couldn't release the aircraft due to a moratorium in place. But in October 2023, the Ministry of Corporate Affairs issued a notification saying that the rules of the Insolvency and Bankruptcy Code wouldn't apply to aircraft-related agreements.
DGCA later told the court that this notification should also apply to cases like Go First's. However, the aviation regulator had been waiting for the court's decision since the matter is still being decided.
While this was happening in court, two bids were made to buy Go First: one from a group led by SpiceJet's chief, Ajay Singh, and another from Sky One based in Sharjah. Ajay Singh and Busy Bee Airways offered Rs 1,600 crore for the airline, but the lenders haven't decided yet.
