 "Go First")
Dubai Aerospace Enterprise (DAE) Capital has told an Indian court it detected corrosion of some parts and "a greenish deposit" on a plane leased to bankrupt airline Go First, after another lessor complained about "robbed" parts.
Foreign lessors have been engaged in a legal tussle to repossess their aircraft after the Indian airline was granted bankruptcy protection in May, imposing an asset freeze that blocked the recovery of 50 plus grounded Airbus planes.
The lessors currently are only allowed an occasional inspection of the grounded Go First planes, which DAE and others claim are not being properly maintained.
In a Sept. 6 filing seeking to ensure the airline carries out maintenance, DAE submitted pictures to the Delhi High Court showing corroding plane parts and said the aircraft will "continue to deteriorate, resulting in a sharp decline in the value of the asset."
Go First did not respond to a request for comment.
Earlier this month, lessor ACG Aircraft Leasing, asked a court to direct the airline to replace "robbed" parts from its leased jets and allow it to appoint around the clock security to guard grounded aircraft, after it found many parts were missing.
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DAE court documents show it was worried about a lack of covers on cabin and cockpit seats "which would eventually lead to fungus formation", according to an internal e-mail contained in the filing.
The filing also stated DAE found a "greenish deposit" on the plane's body. Indian media outlet Mint reported on Thursday that another lessor, BOC Aviation, also told the Delhi court about algae formation as the planes were not covered.
Go First lessor SMBC Aviation Capital Aviation in May told an Indian court that Indian bankruptcy law, which blocks plane repossession, will jolt the market and spark a confidence crisis.
Go First has previously said it aims to resume operations and raise investor funds, but the operations remain grounded.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
