Go First lessors need to wait till May 22 for NCLAT's order on insolvency proceedings

Half of Go First's fleet which could've been carrying passengers is now stuck on the tarmac since new engines didn't arrive, and the other half is grounded due to its insolvency plea. The airline's lessors, now unable to deregister aircraft and lease them to other carriers, have approached the appellate tribunal calling Go First's move a fraudulent one.

Now the National Company Law Appellate Tribunal has set May 22 as the date to pass the order on petitions against Go First's insolvency proceedings by three lessors.

Lessors allege fraud

The NCLAT bench has also asked the petitioners to submit additional documents within two days, as more lessors have approached the Directorate General of Civil Aviation to deregister Go First's aircraft.

Of these, SMBC, GY Aviation and SFV Aircraft holdings, which have sought the NCLAT's intervention, have leased a total of 21 planes to Go First.

Go First has cancelled flights citing non-delivery of engines by Pratt & Whitney, and filed for insolvency claiming that it didn't have funds to continue operations.

Go First's liabilities too high

Go First also approached the National Company Law Tribunal seeking protection from repossession of 45 aircraft, since it can't pay for the bank guarantees and letters of credit that lessors and creditors would invoke.

Apart from paying the lease, Go First also had to bear the burden of fixed costs on aircraft which it could not operate.