Aviation and Airlines (Commonwealth Union) _ The Indian carrier has been experiencing a flurry of developments in recent days. Earlier this week, it was reported that essential components of Go First aircraft were apparently missing, as stated by Irish-based lessor ACG Aviation. The lessor informed the court that emergency slides and fan blades had disappeared from at least two of its aircraft currently leased to the airline, which is undergoing bankruptcy proceedings in India. These proceedings have locked the carrier’s assets, preventing lessors from reclaiming nearly 50 of its grounded Airbus A320s. Since lessors typically perform occasional aircraft inspections, the missing parts pose a risk to their assets.
ACG, the lessor, has been actively seeking control of its stranded aircraft in India and presented evidence to the Delhi High Court. They provided photos and details showing that parts had indeed gone missing, including the captain’s ‘side stick,’ engine blades, a toilet seat, and escape slides. Importantly, ACG did not directly blame Go First for these disappearances. Consequently, the Delhi High Court ordered the airline not to operate lessors’ aircraft as part of routine maintenance.
Questions have arisen about Go First’s leased aircraft ever since its grounding in May. The airline has not yet managed to regain the trust of its lessors, who remain skeptical about the future of their planes with Go First. Other lessors involved in Go First’s bankruptcy, such as Standard Chartered’s Pembroke Aircraft Leasing, SMBC Aviation, and BOC Aviation, have refrained from commenting.
Go First has publicly expressed its intention to raise investor funds to resume operations, but the airline remains grounded. India’s decision to block lessors from repossessing unpaid aircraft has created tension between the carrier and its lessors. SMBC Aviation, the world’s second-largest leasing firm, has warned that this move could “jolt the market and create a confidence crisis.”
The airline has attributed its financial difficulties to ongoing issues with Pratt & Whitney engines fitted to its aircraft, a claim disputed by the engine manufacturer. Additionally, the carrier is facing an employee exodus due to delayed salary payments, with more than 100 employees expected to leave in the coming weeks.
There have been some positive developments, including a $12 million lifeline from lenders to cover essential expenses and the clearance of June’s salaries. The National Company Law Appellate Tribunal (NCLAT) granted lessor Jackson Square Aviation inspection rights, but another application by the same lessor was reportedly dismissed by the NCLAT. Nonetheless, there is hope on the horizon for Go First, as its CEO has announced plans to credit two more months of unpaid salaries in September, and several investors have expressed interest in purchasing the airline. So, the airline is poised for another eventful month ahead.
