Cash-strapped airline Go First has told DGCA that it has “no definite timeline” for resuming operations. The aviation regulator Directorate General of Civil Aviation (DGCA) on Tuesday told Business today that Go First hasn’t shared any detailed plans or timelines on the resumption of operations in their reply to them.
This comes after the National Company Law Appellate Tribunal (NCLAT) on Monday upheld the order of NCLT allowing Go First’s voluntary insolvency resolution proceedings. A two-member NCLAT bench asked several aircraft lessors that are opposing the insolvency of Go First to approach the NCLT for any remedy. It has directed the lessors to approach the National Company Law Tribunal (NCLT) regarding their claim for possession and other related claims concerning the aircraft whose leases were terminated after Go First initiated the insolvency process.
”The order dated May 10, 2023 allowing insolvency is upheld,” said the NCLAT bench headed by Chairperson Justice Ashok Bhushan. The direction came on a batch of four petitions filed by aircraft lessors opposing Go First’s insolvency proceedings. The lessors are SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings, and Engine Leasing Finance BV (ELFC).
On Tuesday, the suspended board of Go First filled caveats with the Supreme Court against four aircraft lessors associated with the airline. Varun Berry, Chairman of the suspended board of Go First, filed four caveats through his counsel advocate Pranjal Kishore, reported PTI. A caveat is a legal measure taken to prevent any ex parte orders or proceedings without giving prior notice to the party that filed the caveat.
The four lessors mentioned in the caveats are SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings, and Engine Leasing Finance BV (ELFC), who collectively own approximately 22 aircraft.
Also Read: Go First Crisis: NCLAT Upholds Insolvency Order, Asks Lessors To Move To NCLT
The caveats were filed in response to the order issued by the National Company Law Appellate Tribunal on Monday, which upheld the order passed by the Delhi bench of the National Company Law Tribunal on May 10.
“The appellants, as well as IRP, are at liberty to make appropriate Application before the Adjudicating Authority (NCLT) for declaration with regard to the applicability of the moratorium on the aircraft with regard to which Leases in favour of the Corporate Applicant (Go First) were terminated prior to admission of Section 10 Application, which Application needs to be considered and decided by the Adjudicating Authority in accordance with the law,” it had said.
A number of lessors have approached the Directorate General of Civil Aviation (DGCA) to initiate the process of deregistration and repossession of Go First’s 45 aircraft. Go First ceased its operations on May 3.