Go First lenders worried over ruling on change of plane parts
Go First have raised concern over the order of the Delhi High Court which restricts the airline from removing any parts from the aircraft it intends to operate. The lessors own the aircraft but are now stuck as a bankruptcy court has put a ban on recovering the aircraft due to ongoing insolvency process. The committee of creditors had earlier approved funding of Rs 425 crore, but are apprehensive that such a requirement will be a hindrance to do business.
«The resolution process has kick started well. Banks have shown confidence by approving infusion. The safety audit result by DGCA is likely to come by today.
Additionally, the favorable ruling from the arbitration also says P&W to supply engines. At such a time, the ruling puts everything in question,» a person aware of the development said. On Friday, Resolution professional Shailendra Ajmera filed an appeal in the Delhi High Court challenging the order.
The management of Go First has also allowed lessors to inspect the aircraft which are under moratorium and has assured them their aircraft will be properly maintained. Seven lessors who have 30 aircraft leased to Go First have started inspection from midnight, an executive of a leasing company said. The lessors have mostly found the aircraft properly maintained, an executive of a leasing firm said.
The leasing firms own the aircraft and is on lease to Go First A person involved with the airline's revival said that it will be difficult to operate an airline with such restrictions. «In a commercial airline business, aircraft develop minor snags for which changing components becomes necessary. The parts are taken from an aircraft which is not being used.
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