Karnataka News Network
Buisness

Go First Lessors' Request To Repossess Aircraft Is Put On Hold By DGCA: Report

According to reports, the Directorate General of Civil Aviation (DGCA), India's aviation regulator, has postponed Go First's lessors' demands to reclaim their aircraft. In a court filing, the DGCA reportedly said that since the airline had filed for bankruptcy, the asset freeze took precedence over any attempts to seize aircraft, according to a Reuters story.

According to the report, the DGCA has not denied the lessors' petitions but has instead placed them on hold until the airline's moratorium period, which will last at least the next six months, expires.

SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings, and Engine Leasing Finance BV are a few of the lessors for Go First.

The airline had previously postponed the cancellation of its flights until June 4. Go First stopped flying on May 3, the day after declaring bankruptcy.

The crisis-hit airline's bankruptcy claim was accepted by the National Company Law Tribunal (NCLT), which also granted it a moratorium on its financial obligations. Lessors of airlines appealed an NCLT ruling to the National Company Law Appellate Tribunal (NCLAT), but the appeals court concurred with NCLT and rejected the appeal.

Lessors are still free to contact NCLT once more over the termination of a lease, according to NCLAT.

The Cape Town Convention, which India had joined, has come under scrutiny because of the DGCA's attitude on lessors' petitions. However, since Parliament did not ratify the convention, it is not a legal requirement in the nation. Although the agreement aims to safeguard repossession of aircraft, the DGCA petition states that local laws take precedence over any international treaties.

Go First was urged by the DGCA last week to submit a resurrection plan within 30 days. Details on the availability of the aircraft fleet, pilots, and other employees needed to maintain operations must be included in the revival plan.

Related posts

GST mop-up increased by 10% to above Rs 1.62 lakh crore in September and will surpass Rs 1.60 lakh crore for the fourth time in FY 2024

Sensex Drops 232 points at market close; Nifty closes below 19,550; and IGL Drops 12%

Did You Know That Indians Possess Three Times As Much Gold As The US Government Treasury?

With Android dominating India, Apple will end 2023 with a 7% market share for iPhones

These Indian banks are trusted by NRIs for transactions, and online banking tops the service rankings

Salasar Techno Engineering’s Concentration on PSU Order Status in the Railway and Power Sectors