More pitfalls for Go First as Delhi courts direct DCGA to deregister 54 aircraft of airline

Go First had stopped flying on May 3, 2023. Returning the aircraft to the lessors would effectively make the airline which has 7,000 employees dead

In a setback to cash-strapped carrier Go First, the Delhi High Court on Friday granted the lessors' plea which sought the deregistration of the company's 54 aircraft. Eight of these are parked at Chhatrapati Shivaji Maharaj International Airport (CSMIA) Mumbai, and the airline is restricted from operating them. The court has ordered the Directorate General of Civil Aviation to aid in their export and provide the certificate of airworthiness.

The Resolution Professional of the airline is prohibited from tampering (replacing, or taking out any accessories, spare parts, documents or any other material) with the planes and must provide comprehensive documentation to the lessors. The RP has been ordered to provide up-to-date information and documentation in relation to the aircraft to the lessors. "The respondent RP shall forthwith provide up-to-date information and documentation in relation to the aircraft and the petitioner lessors are permitted to export aircraft as per the Aircraft Act, Aircraft Rules and applicable laws," the court said.

The court had ordered the deregistration of Go First's 54 aircraft in five working days which were the subject matter of the case. A senior official from DGCA airworthiness directorate told mid-day said, "We will start the deregistration process of the 54 aircraft from this Monday. The process will be completed in the next five working days as directed by the High Court. We will also be providing an airworthiness certificate to facilitate the export of these aircraft."

The court ordered that all maintenance tasks in respect of the aircraft will be undertaken by the lessors and all their authorised representatives up to and until the time the aircraft is de-registered and exported, in pursuance of Rule 32A of the Aircraft Rules. "The respondent DGCA and the respondent Airport Authority of India (AAI) shall assist the petitioner lessors and grant them access to the airports," the court said.

Previously, multiple aircraft lessors of Go First had approached a single judge to request deregistration of their planes by the aviation regulator DGCA allowing them to reclaim the aircraft from the airline. Go First's RP earlier told the High Court that returning the aircraft to the lessors would effectively make the airline, which has 7,000 employees to look after, "dead".

Earlier this month, the National Company Law Tribunal extended the timeline for Go First's insolvency proceedings for 60 more days, against the previous deadline of April 4, 2024. Go First had stopped flying on May 3, 2023. Go First's RP informed the tribunal that the insolvency proceedings were in the final stage as the committee of creditors (CoC) was currently talking over the two resolution plans for the bankrupt airlines.

Sharjah-based aviation company Sky One and SpiceJet promoter Ajay Singh, along with Busy Bee Airways, owned by Nishant Pitti of EaseMyTrip, are the two bidders for the airline. "We have acknowledged the judgment issued by the Delhi High Court on April 26, 2024. 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," Nishant Pitti said on X for Busy Bee.

8
Number of Go First aircraft grounded at CSMIA