Go First Airlines: Delhi HC permits lessors to inspect, maintenance of aircraft

New Delhi [India], July 5 (ANI): The Delhi High Court on Wednesday permitted several aircraft lessors who had leased out their planes to Go First Airlines to carry out inspection and interim maintenance of their planes.

The bench of Justice Tara Vitasta Ganju on Wednesday passed an interim order on applications moved by eight lessors firms. The court while passing directions on the bunch of applications, directed the Directorate General of Civil Aviation (DGCA) to allow lessors and their representatives to access the Airport where these aircraft are parked.

The bench allowed lessor firms to carry out maintenance tasks of their planes twice a month. The interim order is allowed until the final disposal of their pleas seeking to de-register their aircraft from the airline, the court made it clear. Court further added that Go First or the Resolution Professional cannot use the aircraft without the proper consent of the lessors.

The direction of Delhi HC came while hearing a bunch of petitions filed by several aircraft lessors seeking direction to DGCA to deregister the planes leased to Go First Airlines.

On June 1, the bench of Justice Tara Vista Ganju had reserved her order after hearing all parties, including DGCA, Aircraft lessors, National Company Law Tribunal (NCLT)-appointed Interim Resolution Professional (IRP) etc.

The lessors firms include Accipiter Investments Aircraft 2 Limited, EOS Aviation 12 (Ireland) Ltd, Pembroke Aircraft Leasing 11 Limited, SMBC Aviation Capital Ltd, DAE SY 22 13 Ireland Designating Activity Company, SFV Aircraft Holdings Ire 9 DEC Limited, ACG Aircraft Leasing Ireland Limited, GY Aviation Lease 1722 Co Limited, who had approached Delhi High Court and sought deregistration of their aircraft which are with Go First.

Go First Airlines on Tuesday, July 4, announced that it will be cancelling its operations till July 10, 2023.

Amid an ongoing three-day audit of cash-starved Go First airlines by the Directorate General of Civil Aviation (DGCA), the airlines cancelled its operations for the 13th time citing operational reasons on Tuesday.

A senior official said that a team of DGCA has begun a three days audit that started on Tuesday.

“Audit is focused on safety-related aspects as well as on physical verification of the arrangements made for the resumption of flight operations,” the official said.

On June 29, DGCA informed that after a preliminary review of the resumption plan submitted by the Resolution Professional (RP) for Go First on June 28, 2023, DGCA has planned to conduct a special audit of the Go First facilities at Mumbai and Delhi.

The National Company Law Tribunal (NCLT) in its judgement on May 10 admitted the plea of Go First Airlines for insolvency proceedings.

The budget airline on May 4 had moved National Company Law Tribunal (NCLT), seeking protection under bankruptcy law. It had also sought an interim moratorium to prevent the seizure of its 26 aircraft by aircraft lessors.

In addition, the airline sought directions for the appointment of an insolvency resolution process (IRP).

The DGCA in Delhi High Court had stated that it has not rejected any of the applications moved by the lessors and these applications are in abeyance because the moratorium came into effect.