NCLT refuses to restrain Go First from flying leased planes

Insolvency tribunal NCLT on Wednesday rejected Go First lessors' petitions to take back the planes leased to the grounded airline.

The NCLT clarified that since the Directorate General of Civil Aviation (DGCA) had not deregistered Go First's aircraft, they can be used to resume operations, provided they adhere to safety norms set by regulators.

Engine and aircraft lessors had sought permission to inspect the aircraft, but the NCLT rejected the plea, stressing the resolution professional's duty to maintain the aircraft and engines efficiently and safely.

The Committee of Creditors has allocated funds to restore Go First's operations and pay lease rents, offering hope for the airline's revival.

Previously, the Delhi High Court had permitted eight aircraft lessors to inspect and maintain 30 aircraft owned by Go First. However, the NCLT clarified that its decision would align with the Insolvency & Bankruptcy Code, 2016.

The tribunal noted that the lessors were aware of Go First's insolvency plea and any attempt to terminate lease agreements during the moratorium period would be considered evasive.

With a conditional approval from DGCA, Go First can now take steps towards resuming operations and overcoming financial challenges. The airline's revival prospects brighten as it continues efforts to attract potential investors through Expression of Interest.

In conclusion, the NCLT's decision allows Go First to keep its planes flying, paving the way for a possible turnaround in its fortunes and survival in the aviation sector.