 "Go First")
Go First on Monday asked the National Company Law Tribunal (NCLT) in Delhi to urgently pass an order on its insolvency plea.
The NCLT has not given the next date of hearing or said when an order may be passed.
Senior advocate P Nagesh, appearing for Go First, said lessors had moved an application to repossess aircraft during legal proceedings.
Lessors are not allowing (the airline) to carry out routine maintenance of aircraft, Nagesh told NCLT. “We urge the court to pass an order.”
The airline filed for bankruptcy protection last week, blaming "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neo. In its bankruptcy application, the airline said it had cancelled 4,118 flights (serving 77,500 passengers) in the last 30 days.
The airline said on Friday that its flight operations will remain suspended till May 12, due to "operational reasons". It first suspended flights till May 9 and suspended bookings till May 15.
More From This Section
The airline told the NCLT last week that till the filing of its plea it had not defaulted on paying its financial creditors. He said of its 54 aircraft, 26 were operational.
“We are capable of operating these 26 aircraft, and are also capable of paying salaries and dues on fuel, landing, and other things to stay operational,” said Nagesh.
The airline also urged the tribunal to grant it an interim moratorium and, if that was not possible, then admit its insolvency plea under the Insolvency and Bankruptcy Code(IBC).
Lessors (SMBC Capital Aviation, GAL, CDB Aviation, Sonoram Aviation Company, and MSPL Aviation), opposed the airline’s plea and said it could not ask for a moratorium even before they were heard.
The Directorate General of Civil Aviation (DGCA) on Monday issued a show cause notice to Go First, asking why its licence should not be cancelled. The regulator also requested that the airline cease all ticket sales immediately.
