Grounded Go First Airline Receives 90-Day Extension From NCLT For Resolution

Go First Airlines remains inactive, receiving a 90-day moratorium extension from NCLT for insolvency resolution. Failure may lead to liquidation by Feb 4, 2024.

Go First Airlines is currently out of service after it has continuously delayed restarting its operations. The low-cost airliner has now received an extension of 90 days for a moratorium from the National Company Law Tribunal under the Corporate Insolvency Resolution Process. The Wadia-owner air carrier is asked to complete the process of resolution in the given time, ending on Feb 4, 2024. Failing to show a resolution within the extended period, NCLT will order liquidation of the company. This verdict on the case comes as a victory for the inoperative airlines, as it dismissed the arguments of the aircraft lessors.

Go First's Resolution Professional informed the tribunal that there was one prospective bidder for the airline. He also said that the Committee of Creditors (CoC) is now reconsidering the next course of action for the carrier.

Earlier, Delhi High Court permitted Go First's lessors to engage security personnel round-the-clock to protect their aircraft lying idle for several months. Justice Tara Vitasta Ganju also asked the Resolution Professional (RP) of Go First to share documents related to the maintenance of aircraft, engines, and airframes with its lessors. The interim applications were filed by the lessors in the main petitions seeking deregistration of their planes by aviation regulator DGCA so they could take them back from the airline.

The high court ordered that the Directorate General of Civil Aviation (DGCA), through the Bureau of Civil Aviation Security, shall permit duly verified security personnel to monitor the aircraft. The main matter is listed for further hearing on October 19.

In an earlier interim order passed on July 5, the high court had allowed the lessors to inspect their aircraft at least twice a month and carry out maintenance.

It had said there can be no denial of the fact that the aircraft of the petitioner lessors are highly valuable and sophisticated equipment and require maintenance for their preservation.

It had also restrained Go First and its representatives, and the RP appointed by the NCLT, from removing, replacing or taking out any part or components, or records of the 30 aircraft except with the prior written approval of the lessor of the particular airplane.

The high court passed an interim order on multiple applications by several lessors seeking maintenance of their aircraft.