DELHI- The Delhi High Court has instructed the Director General of Civil Aviation (DGCA) to process Go First, previously known as Go Air, aircraft deregistration applications within five working days, posing a significant setback for the airline.
Justice Tara Vitasta Ganju denied the Resolution Professional’s request to delay the order for a week to file an appeal, putting Go First at risk of losing all 54 of its aircraft.
Go First DGCA Case
The court invalidated DGCA’s communications from May 2023, which had suspended deregistration applications due to Go First’s moratorium. Additionally, the Resolution Professional must provide current maintenance details to lessors, while the Airport Authority of India (AAI) will handle export and airworthiness communications with lessors.
Lessors opposed to exporting their aircraft can seek legal recourse. Finally, the Resolution Professional is barred from accessing the aircraft moving forward.
In May 2023, aircraft lessors such as Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation, and SMBC Aviation lodged a writ with the Delhi High Court, requesting instructions to reclaim the planes leased to the financially troubled airline.
Previous Verdict
Initially, the DGCA stated that it couldn’t deregister these aircraft due to the ongoing moratorium. However, on October 4, 2023, the Ministry of Corporate Affairs issued a notification exempting transactions concerning aircraft, aircraft engines, airframes, and helicopters from section 14(1) of the Insolvency and Bankruptcy Code, 2016 (IBC).
In response, the DGCA filed an affidavit in the Delhi High Court, affirming that the notification exempting aviation leases from the moratorium under the IBC should also apply to pending cases.
Essentially, the DGCA’s stance indicates that the exemption notification should ideally extend to Go First. Still, the regulator will await guidance from the High Court, as the matter is under judicial review.
During the litigation process, two bids were tendered for Go First. One bid came from a consortium led by SpiceJet’s Ajay Singh and Nishant Pitti’s Busy Bee Airways, while the other bid was from Sharjah-based Sky One.
Reportedly, Ajay Singh and Busy Bee Airways jointly offered Rs 1,600 crore ($193.10 million) for the airline. However, the airline’s lenders have yet to make a final decision regarding these bids.
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