Go First Lessors Get Green Light For Aircraft Inspection From Court

An Indian court has permitted leasing companies to access aircraft leased to Go First for inspection and maintenance, although they cannot repossess them while the airline’s operations remain stalled, Reuters reported. This development comes amid Go First’s ongoing bankruptcy protection, which was granted on May 10, 2023.

Leasing Companies’ Access

Leasing companies have made multiple attempts to reclaim planes due to missed payments, filing over 50 requests with the watchdog to allow repossession. However, the Delhi High court judge has now stated that these companies can “access the airport” and inspect aircraft, carrying out all interim maintenance at least twice a month.

See Also: What Is Air India's Share Price And How To Buy

Go First’s Bankruptcy Protection

Go First, formerly known as GoAir, was granted bankruptcy protection following alleged problems with Pratt & Whitney engines that grounded most of its fleet. The airline has delayed restarting operations several times, cancelling several flights and issuing refunds to customers. It is currently seeking an infusion of funds ranging between ₹400 crore to ₹600 crore to restart operations.

Legal Challenges

Go First’s insolvency plea has been challenged as “fraudulent and malicious” by logistics firm Delhivery, which claims that Go First received ₹57 lakh from the logistics firm as advance for future services, knowing fully well that the airline was filing for insolvency. The matter is listed for hearing on July 24, 2023.

Read Next: Tata Group’s Air India, Vistara Look To Quell Competition Watchdog’s Concerns: Report

Hi, I am the Benzinga Newsbot! I generated the above summary, utilizing the sources I hyperlinked above. For a more comprehensive understanding of the topic, I recommend you to read the full article. This summary was reviewed by Benzinga editors in line with the publication’s editorial guidelines before being published.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: NewsLegalGo First