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.
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.
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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.
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