NCLAT upholds GoFirst insolvency proceedings
Ten News Network
New Delhi, 22nd May 2023: The National Company Law Appellate tribunal on Monday upheld the insolvency proceedings against Go First Airlines.
The institute’s decision is a setback to the increasing efforts made by its lessors to repossess their aircraft. Earlier this month, major airline companies, including GY Aviation Lease and SMBC Aviation Capital, had contested a tribunal order awarding Go Airlines (India), also known as Go First, bankruptcy protection.
The airline has blamed its financial issues on faults with Pratt & Whitney engines, which it claims caused the grounding of over half of its fleet of Airbus A320 neos. The accusations have been dismissed as “without merit” by the engine manufacturer in the United States.
According to the appeals tribunal on Monday, the National Company Law Tribunal will decide whether lessors who cancelled their leases before the bankruptcy procedures began can repossess their aircraft.