Aviation and Airlines (Commonwealth Union) _ Go First, an Indian airline, is facing challenges as it tries to make a comeback. The airline has been in a dispute with its lessors, who are unhappy about not being able to repossess their planes due to the bankruptcy process. Now, the court has issued an order preventing Go First from changing or removing aircraft parts, which could hinder its plans to restart operations.
Go First has filed an appeal against the court order in the Delhi High Court, as it considers the restriction on changing aircraft parts to be a significant obstacle to resuming business. Routine or unscheduled maintenance often requires the replacement of aircraft components, but the court order restricts Go First from carrying out such procedures. An industry insider explained that it is common practice for airlines to change components that are not currently in use, as it is necessary for the smooth operation of an aircraft.
The court order has raised concerns among the banks that have provided funding to Go First. The lenders had approved a funding of around $50 million, pending approval from India’s aviation regulator. The resolution process was progressing as planned, but the court order has the potential to disrupt the airline’s plans and increase the waiting time. Banks are anxious to keep the airline operational to save jobs and repay creditors, as they have seen the negative consequences of grounded airlines in the past.
Currently, Go First’s flights remain suspended until July 12th, as stated on the airline’s website. A recent court ruling instructed the aviation regulator and airport authorities to allow Go First’s lessors access to their aircraft for inspections and maintenance. The airline has also published a newspaper advertisement inviting expressions of interest for the sale of the carrier. The outcome of these developments remains to be seen.
