Indian airline seeks urgent bankruptcy order
A Go First airline, formerly known as GoAir, passenger aircraft is parked at the Chhatrapati Shivaji International Airport in Mumbai, India, May 3, 2023. PHOTO: REUTERS
Go Airlines on Monday called on India’s company law tribunal to urgently grant its request for bankruptcy protection, as the aviation regulator stepped up pressure on the carrier to stop issuing new tickets and lessors sought to repossess planes.
The airline, widely known as Go First, filed for bankruptcy protection last week, blaming “faulty” Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neo. In all, it has 57 planes.
While the National Company Law Tribunal heard Go First’s bankruptcy plea last week, it has yet to pass an order. This has given lessors a window to secure their assets. Leasing companies including GY Aviation Lease, SMBC Aviation Capital and Pembroke Aircraft Leasing, submitted requests to India’s aviation regulator to take back at least 20 planes.
Lawyers representing cash-strapped Go Airlines said at Monday’s court hearing that the lessors’ actions could further impair its operations.
Separately, India’s aviation regulator ordered Go First to stop issuing new tickets, a government source with direct knowledge of the matter said.
Published in The Express Tribune, May 9th, 2023.
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