BackGo First crisis: Lessors seek deregistration of 36 planes
The DGCA has directed Go First to immediately stop bookings and sale of tickets till further orders
PremiumLessors Monday urged the Directorate General of Civil Aviation (DGCA) to deregister 13 more Go First aircraft to secure their assets. Earlier, on Thursday they has applied for deregistration of 23 planes of the cash-strapped Indian airline before the insolvency process begins.The lessors have so far sought the deregistration of 36 planes of Go First.
The Go First today 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.
Meanwhile, the aviation regulator directed the carrier to immediately stop bookings and sale of tickets till further orders as uncertainties rise over the future of the no-frills airline.
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.
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.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
