Returning aircraft to lessors will render Go First 'dead': IRP tells Delhi HC
The NCLT-appointed IRP, tasked with managing the crisis-hit Go First, told the Delhi High Court that returning aircraft to the lessors will render the airline, which has 7,000 employees to look after, ‘dead’
PremiumThe Interim Resolution Professional (IRP), currently managing the crisis-hit Go First, Tuesday informed Delhi High Court that returning aircraft to the lessors will render the airline "dead".
Harish Salve, former Solicitor General of India who was representing the IRP, submitted before Justice Tara Vitasta Ganju that the return of aircraft to lessors will mark the end of the airline.
“This will scuttle the entire process. Look at the consequences…. If the aircraft are returned, that's the end of this airline, it's dead. Thousands of people who are employed, right from the person who cleans and scrubs the floor of the office spaces, pilots, large people who work at check-in counters...." Salve said.
"Airline is a very employment intensive industry. We have over 7,000 employees. My client has to take charge of all this, they will have priority. Ultimately it’s a question of money. These are all leased aircraft. Those issues have to be worked out," the senior counsel argued.
The former Solicitor General said it is not that Go First has grabbed somebody’s property illegally and wants to walk out.
The IRP was responding to pleas by several aircraft lessors of Go First seeking deregistration of their planes by aviation regulator Directorate General of Civil Aviation (DGCA) so they could take them back from the airline.
With a moratorium in force on financial obligations and transfer of assets of Go First in the wake of the insolvency resolution proceedings, the lessors are unable to deregister and take back the aircraft leased to the carrier.
The lessors who have approached the high court are: Accipiter Investments Aircraft 2 Limited, EOS Aviation 12 (Ireland) Limited, Pembroke Aircraft Leasing 11 Limited and SMBC Aviation Capital Limited.
The lawyers for the lessors had said they had approached the civil aviation regulator for deregistration of their aircraft but it rejected their pleas.
They had said they have not received any communication from the DGCA, but having checked the status of their applications on the regulator’s website, they found their requests have been rejected.
On Tuesday, fresh petitions of SFV Aircraft Holdings IRE 9 DAC Ltd, ACG Aircraft Leasing Ireland Ltd and DAE SY 22 13 Ireland Designated Activity Company were also listed.
Go First stopped flying from May 3. The company’s total dues to banks and financial institutions are around ₹6,000 crore. It had defaulted on payments of ₹2,600 crore to aircraft lessors and of ₹1,200 crore to vendors, as per the company’s application for voluntary insolvency in the NCLT.
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