Delhi High Court Grants Relief To GoAir Lessors, Asks DCGA To Deregister 54 Planes In Next… (image source: iStock)
GoAir: The Delhi High Court has granted relief to the GoAir lessor India’s budget air carrier, Who leased 54 aircraft to GoAir, which has been grounded since last May, The court directed the Directorate General of Civil Aviation (DGCA) to de-register these planes within a maximum of five working days, offering a glimmer of hope for the lessors who have been grappling with the airline’s prolonged grounding.
Relief for Lessors
The court’s decision comes as a welcome relief for the lessors, who have been facing challenges in reclaiming their aircraft amidst the airline’s operational hiatus. With the directive to de-register the planes, the lessors can now proceed with necessary actions to safeguard their assets and explore alternative avenues.
However, the path to revival for GoAir under the Insolvency and Bankruptcy Code (IBC) has become even more daunting. Reports suggest that lessors are being courted by both Tata’s Air India and cash-rich IndiGo for around 15 Airbus A320 family planes, which could swiftly return to service. This competition for aircraft poses additional hurdles for GoAir’s revival efforts.
Engine Woes Persist
While some aircraft may find new homes swiftly, the rest are confronted with the challenge of securing replacements for their malfunctioning engines and spares from Pratt & Whitney. The engine supplier’s inability to provide timely replacements has left over 75 planes of IndiGo grounded, exacerbating the industry-wide crisis.
Negotiations and Uncertainties
The consortium led by Nishant Pitti, including SpiceJet‘s MD Ajay Singh, vying to revive GoAir under the IBC, is expected to engage in negotiations with the lessors for the airworthy planes. However, the lessors’ ultimate decision remains uncertain, with competing offers from established players like Air India and IndiGo versus a consortium with SpiceJet connections.
Court’s Directive and Restraints
Justice Tara Vitasta Ganju of the Delhi HC granted lessors permission to undertake maintenance on the grounded planes until their de-registration and export in compliance with Indian law. Meanwhile, the resolution professional (RP) of GoAir and the airline itself have been barred from accessing or operating the aircraft, adding legal constraints to the situation.
In response to the court’s decision, Nishant Pitti stated the consortium’s commitment to evaluate their position and adjust their proposed offer for GoAir accordingly, emphasizing adherence to the legal process and strategic objectives. Sources indicate that the consortium is eager to proceed with the resolution process, aiming to pursue arbitration between GoAir and Pratt & Whitney in Singapore, potentially securing a significant sum to aid in the airline’s revival.
Potential Lifeline for SpiceJet
Ajay Singh, seeking funds to sustain SpiceJet’s operations, could find a lifeline through involvement as the operational arm of a revived GoAir. The synergy between the two airlines could provide a strategic advantage amidst the turbulent aviation landscape.
