All the flights of Go First have been canceled until 20 November due to operational reasons, said the private aviator on 19 October.
Meanwhile, reports arrived on Thursday that the Central Government may issue clarification on whether lessors of Go First airline can repossess their aircraft and engines, following recent modifications to the Insolvency and Bankruptcy Code (IBC) by the Ministry of Corporate Affairs, the counsel for the Indian government told the Delhi high court.
The recent IBC changes, dated 3 October, state that Section 14(1) – imposing a moratorium on insolvency proceedings – does not cover deals related to aircraft, engines, airframes, or helicopters.
This alteration has enabled Go First’s lessors to advocate for the repossession of their assets in tribunals and courts. However, there might be delays due to changes within the National Company Law Tribunal (NCLT) bench overseeing the issue.
Earlier this year, the high court had allowed lessors to inspect the grounded aircraft, a decision later upheld by the Supreme Court.
In May, Go First filed for insolvency due to financial challenges stemming from Pratt and Whitney engine issues. On 10 May, the NCLT approved its plea leading to the suspension of the airline’s board.
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Updated: 19 Oct 2023, 07:11 PM IST