Go First crisis: Lessors approach DGCA to deregister 45 of 55 planes – today news


Aircraft lessors on Tuesday approched the DGCA for deregistration of 45 planes of the cash-strapped Go First Airways. The airlines have a total strength of 55 planes, reported ANI.

The aviation regulator on Monday had directed the airline to immediately stop ticket sales, and deregistration of 13 aircrafts of the Go First.

On Monday, Go First requested the National Company Law Tribunal (NCLT) for an early decision on its plea for voluntary insolvency resolution proceedings before the two-member bench headed by tribunal President Ramalingam Sudhakar.

The tribunal agreed to look into Go First’s request.

The regulator also issued a show cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner, people familiar with the matter said.

On 4 May, eight lessors wrote to DGCA seeking the de-registration of 20 aircraft under the Irrevocable De-registration and Export Request Authorisations. Under this, the regulator is required to de-register aircraft within five days from the name of a third party in cases like the default of lease rentals.

As many as 28 planes or more than half of the airline’s fleet are grounded due to non-supply of engines by Pratt & Whitney (P&W), the airline’s chief Kaushik Khona had said on May 2, the day when the airline filed for voluntary insolvency resolution proceedings.

Earlier, Go First suspended ticket sales till May 15 and cancelled flights till May 12. The cash-strapped carrier has not flown since May 3, a day after filing for voluntary insolvency resolution proceedings before the NCLT. With liabilities worth 11,463 crore and a financial crunch, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.

The DGCA has asked the airline to submit its reply within 15 days of the receipt of the show cause notice, and further, a decision on the continuation of its Air Operators Certificate (AOC) will be taken on the basis of the reply submitted by it.

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