The Delhi High Court granted relief to the lessors of 54 grounded GoAir aircraft by directing the DGCA to de-register these planes within five working days. This decision complicates GoAir’s revival under the Insolvency and Bankruptcy Code (IBC), as both Tata’s Air India and financially robust IndiGo are vying for around 15 Airbus A320 family planes. These planes could swiftly become airworthy.
The rest of the aircraft must wait for engine/spare replacements from Pratt & Whitney, as the company has struggled to supply parts to IndiGo for months, resulting in over 75 grounded planes. The Nishant Pitti-led consortium, including SpiceJet’s MD Ajay Singh, aims to revive GoAir under IBC and may negotiate for the 15 airworthy planes. The competition between AI/IndiGo and a consortium with SpiceJet ties leaves the lessors in a deliberative position.
The High Court’s decision permits lessors to conduct maintenance on the grounded planes until de-registration and export. The resolution professional and GoAir are prohibited from accessing or operating the aircraft, or tampering with accessories, spare parts, and documents.
Nitin Sarin, managing partner of Sarin & Co, expressed, “It is a significant victory for the lessors,” highlighting their struggle with the NCLT’s moratorium extension, which they contested due to terminated leases predating the moratorium.
Nishant Pitti stated, “We will review the details of the order…evaluate our position and consider any necessary adjustments to our proposed offer for GoAir.”
The Pitti-led consortium aims to proceed with the resolution process, anticipating a favorable outcome in GoAir’s arbitration case against PW in Singapore. Ajay Singh, seeking resources to sustain SpiceJet, sees potential in becoming the operational entity of a revitalized GoAir.