NEW DELHI- The potential recovery of the grounded Indian low-cost carrier Go First may encounter obstacles if a court upholds aircraft lessors demands. These lessors are seeking specific records related to missing or deteriorating jet components, as outlined in legal documents filed by the airline.
Since Go First was granted bankruptcy protection in May, foreign lessors have been engaged in a legal dispute to reclaim their aircraft. Under Indian law, this protection placed a halt on the retrieval of over 50 grounded Airbus planes.
Go First Lessors Demands
Dubai Aerospace Enterprise (DAE) Capital and ACG Aircraft Leasing have recently turned to a Delhi court, expressing concerns that certain parts had been purportedly removed without authorization or that the aircraft was undergoing corrosion.
These lessors, who are only permitted periodic inspections of the grounded leased aircraft, have requested the court to compel Go First to furnish maintenance and aircraft preservation records for their respective jets.
In its initial legal response, Go First contested the lessors’ demands. It stated that complying with such requests would be time-consuming and could adversely impact its revival. This information is detailed in legal documents filed by Go First’s bankruptcy officer, Shailendra Ajmera.
In court documents, Ajmera, the bankruptcy officer, emphasized that such requests “carry significant consequences for Go Air’s day-to-day operations and directly impact its status as a viable business.” Therefore, he urged the court to reject the lessors’ appeals.
Obtaining the requested records, he further explained, would be a time-consuming process that would divert Go First’s resources away from its primary focus on resuming operations.
Submitted on September 8 and September 17, these filings are not publicly available. Reuters are reporting them for the first time. Neither Go First, nor the two lessors have provided an immediate response to requests for comment. The airline’s submissions are scheduled to be addressed later on Sep 23, 2023.
SMBC, the world’s second-largest aircraft lessor, which also has leased planes with Go First, previously warned in May that India’s decision to prevent leasing firms from repossessing the airline’s planes could disrupt the market and trigger a crisis of confidence.
Stay tuned with us. Further, follow us on social media for the latest updates.