News around you

Delhi HC asks DGCA to deregister 54 leased Go First planes

It is also a big setback for creditors of the airline who were looking to trim their exposure from the insolvency process.

Screenshot 2024 04 27 090401NEW DELHI: In a setback for Go First, the Delhi High Court on Friday directed the country’s aviation regulator Directorate General of Civil Aviation (DGCA) to go ahead with the process of deregistering 54 aircraft leased by the grounded airline within the next five working days.

“DGCA shall forthwith and not later than five working days process the deregistration applications filed by the 54 aircrafts,” the court said. This order has the capability to derail the revival process of the airline as it would leave minuscule assets for the two interested bidders.

It is also a big setback for creditors of the airline who were looking to trim their exposure from the insolvency process. Resolution professional of the airline, Shailendra Ajmera of consultancy firm EY, has admitted claims of Rs 4,254 crore from the financial creditors. Including operational creditors, the total admitted claims stand at about Rs 6,188 crore.

Two parties (a consortium led by SpiceJet’s Ajay Singh and Nishant Pitti’s Busy Bee Airways, and another one from Sharjah-based Sky One) have submitted bids to take over the airline. According to reports, Singh and Pitti have jointly submitted a bid of Rs 1,600 crore for the airline.

“We will review the details of the order once we receive the official document. Following this review, we will evaluate our position and consider any necessary adjustments to our proposed offer for Go Air. Our commitment remains to proceed in a manner that respects the legal process and aligns with our strategic objectives,” said Pitti on behalf of Busy Bee Airways. Pitti is co-founder and CEO of EaseMyTrip.

The order, however, offers a major relief to aircraft lessors who have been working to reclaim their aircraft for about a year now when the Wadia-family owned airline declared bankruptcy. Go First stopped flying on May 3, 2023, a day after it filed for bankruptcy. Justice Tara Vitasta Ganju, while orally pronouncing the order, restrained the resolution professional (RP) appointed under the insolvency law to manage the airline, and its directors from moving or taking away the planes or spare parts, documents, records and any other material.

The HC said the DGCA, Airport Authority of India and its authorised representatives shall aid and assist the petitioner lessors and grant them access to the airports.

You might also like

Comments are closed.