Wadia Group-owned Go Airlines India Ltd has reportedly asked the National Company Law Tribunal (NCLT) to urgently pass an order on its insolvency resolution plea, citing the likely repossession of aircraft by the carrier's lessors.
Lawyers representing cash-strapped Go First told the tribunal to urgently pass an order on its plea, saying lessors are trying to repossess the planes, which could further impair its operations, news agency Reuters reported.
The National Company Law Tribunal had reserved its order after hearing Go First's bankruptcy plea last week.
On Friday, Go First's lessors approached India's aviation regulator, the Directorate General of Civil Aviation (DGCA), seeking 'deregistration' of 22 aircraft operated by the Nusli Wadia-owned airline. These Airbus jets include A320neo airplanes that are powered by Pratt & Whitney engines.
GY Aviation, Pembroke Aircraft, Narmada Aviation Leasing, Yamuna Aviation Leasing and SMBC Aviation, among others have leased aircraft to Go First. All the lessors are based out of Ireland.
The lessors' move to take back possession of aircraft operated by Go First could further jeopardise the Wadia group's plans to resuscitate the airline.
On Friday, Go First cancelled all its scheduled flights till May 12, 2023, citing 'operational reasons'. The airline has also suspended the sale of flight tickets till May 15.
The aviation regulator had last week told the airline to process refunds for cancelled flights to passengers.
The beleaguered carrier commanded a market share of 7.8% in the January-March quarter and flew 29.11 lakh passengers in the first three months of 2023, as per DGCA data.
Go First has blamed Pratt & Whitney's 'defective' and 'failing' engines for its financial troubles.
The grounding of close to 50% of its A320neo fleet due to the 'serial failure' of Pratt & Whitney engines had set the airline back by ₹10,800 crore in lost revenues and additional expenses, it said in a statement on May 2.
"The percentage of grounded aircraft due to Pratt & Whitney's faulty engines has grown from 7% in December 2019 to 31% in December 2020 to 50% in December 2022. This is despite Pratt & Whitney making several on-going assurances over the years, which it has repeatedly failed to meet," the budget carrier had said.
Go First claims it was forced to apply to the NCLT after Pratt & Whitney, the engine supplier for Go First's Airbus A320neo aircraft fleet, refused to comply with an award issued by an emergency arbitrator. The order directed Pratt & Whitney to release and dispatch without delay at least 10 serviceable spare leased engines to Go First by April 27, 2023 and a further 10 spare leased engines per month until December 2023.
