Setback for Go First as Lessors Seek Repossession of Entire Grounded Fleet
Go First (G8), based in Mumbai International, has faced a major setback in its relaunch plans as aircraft lessors have expressed their desire to repossess all the planes in the carrier’s grounded fleet. India’s civil aviation minister, V. K. Singh, revealed that the Directorate General of Civil Aviation (DGCA) has received applications from lessors to deregister a total of 54 aircraft leased to Go First. However, the processing of these applications is currently on hold due to ongoing cases before the National Company Law Tribunal (NCLT) and the High Court of Delhi.
The fleet of Go First includes five A320-200s and forty-nine A320-200Ns. While lessors have sought to deregister and reclaim their aircraft, the DGCA has suspended all such requests after a ruling by the National Company Law Tribunal in May, which prevented lessors from repatriating their planes. Major lessors affected by this development include Aviation Capital Group, BOC Aviation, CCB Financial Leasing, CDB Aviation, DAE Capital, ICBC Financial Leasing, Jackson Square Aviation, Maverick Aviation Partnership, Merx Aviation Finance, Minsheng Financial Leasing, SKY Leasing, and SMBC Aviation Capital. These lessors have collectively submitted INR 180 billion Indian rupees (approximately USD 2.2 billion) in creditor claims to Go First’s resolution professional.
Go First suspended its operations in early May but has consistently maintained its intention to relaunch. Recently, the DGCA approved a scaled-back restart plan, granting permission for the airline to operate 116 daily flights using 15 aircraft and servicing eight airports. However, this is subject to Go First securing sufficient working capital and agreeing to ongoing DGCA oversight. The airline’s resolution professional, Shailendra Ajmera, has acknowledged that securing fresh leases or having termination applications revoked will be necessary to facilitate the restart.
Additionally, one of the lessors, DAE (SY22) 13 Ireland Designated Activity Company, has taken legal action against Go Airlines (India) Limited in the United Kingdom’s High Court on June 5, seeking to reclaim an A320neo leased by Dubai-based DAE Capital. The legal dispute further complicates the relaunch efforts.
Despite these challenges, Go First conducted a test flight of one of its grounded aircraft, A320neo VT-WGD (msn 7205), in preparation for the restart. The flight operated offshore from Mumbai for 40 minutes on July 25. This aircraft is leased to Go First by SMBC Aviation Capital. However, the lessor has not provided any comments regarding the flight or the ongoing situation.