NEW DELHI: The National Company Law Tribunal (Delhi) will pass order on Go Airlines (India) Ltd’s insolvency case on Wednesday. The two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta would pronounce the order on Wednesday morning, according to a notice on the tribunal’s website on Tuesday. The order will come a week after the low-cost carrier had filed for voluntary insolvency proceedings, blaming faulty Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neo planes.
The bench would also decide on Go First’s plea seeking an interim moratorium on its financial obligations. The tribunal on May 4 reserved its order after hearing the carrier and its aircraft lessors, who have opposed the petition seeking interim protection. Time is running out for the Wadia family promoted airline as more aircraft lessors are seeking to take back their planes. According to latest figures, various lessors have reached out to aviation regulator DGCA for the deregistration of 42 planes.
The country’s largest conglomerate and owners of Air India, Tata Group, and the country’s largest airline, IndiGo, are reportedly in discussions with the lessors to acquire Airbus A320neo planes from Go Airlines. Tata and IndiGo are also said to be in discussions with airport operators in New Delhi and Mumbai regarding landing and parking slot arrangements.
Lessors are caught in a tricky situation as the Insolvency and Bankruptcy Code (IBC) prohibits the recovery of any property by an owner if a company files insolvency plea. If Go First goes into insolvency, its lessors can’t take back the planes. Meanwhile, junior aviation minister VK Singh on Tuesday said the government had previously held talks with P&W to resolve the issue at Go First.
He also said a bailout can only happen if the engine issue is resolved. The cash-strapped airline on Tuesday said it will respond to the aviation regulator’s show cause notice in due course and is taking possible measures to reduce inconvenience to the passengers. The airline cancelled all its flights till May 12 and suspended sale of tickets till May 15.
AI, IndiGo in talks with plane lessors
Air India and IndiGo are reportedly in talks with lessors to acquire Airbus A320neo planes from Go Airlines. Air India and IndiGo are said to be in talks with airport operators in Delhi and Mumbai regarding landing and parking slots