Go First (Mumbai International) is in talks with four of its lessors in a bid to retain some aircraft, the LCC's legal counsel told the Delhi High Court on December 14, 2023. Meanwhile, during the hearing, counsel for other lessors told the court that the airline's administrator, Shallendra Ajmera, could not adequately maintain their stranded assets, and the court said the administrator's records were "completely in disarray."
Appearing for Go First's administrator, known locally as a resolution professional, Diwakar Maheshwari disclosed that one of the four lessors the airline was in talks with was SMBC Aviation Capital. Go First leases its entire 53-strong fleet from 12 different lessors. The LCC ceased operations in early May, saying on-running problems with "defective and failing engines” manufactured by Pratt & Whitney had caused a cash flow crisis. In July, ch-aviation reported that lessors wanted to recover every aircraft.
Excluding SMBC, the lessors are 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, and SKY Leasing. At least five of these lessors (or special purpose vehicles controlled by them) are attempting to have Go First declared insolvent in India's bankruptcy court, the National Company Law Tribunal (NCLT), while the Delhi High Court is used to settle other disputes between stakeholders, including enforcing orders made in other courts.
Lessors unwilling to negotiate with Go First or Ajmera told the court last week that neither party can adequately look after their assets. “Is this airline even capable of doing a test flight today without risk to life and limb?" counsel for one lessor asked the court. “These aircraft are million-dollar assets." At least one lessor is trying to initiate contempt proceedings against Ajmera in the same court for failing to follow previous court orders regarding aircraft maintenance.
Justice Tara Vitasta Ganju agreed that the lack of ongoing aircraft maintenance was "a problem" for all parties. However, the judge criticised Ajmera over his record keeping, saying they "were completely in disarray, to put it mildly." The judge adjourned the matter until December 20.
Separately, Ajmera advised the court that none of Go First's 2,278 employees are reporting for work. He did not say why, but it is possibly because no salaries have been paid for the past six months. Late last month, Go First's CEO Kaushik Khona resigned, saying no serious bidders have emerged to salvage the LCC in the seven months since it filed for insolvency. Billionaire industrialist Naveen Jindal had run the ruler over the airline but has since dropped any plans to buy and relaunch it. India's Money Control reports that SpiceJet, Sharjah's Sky One, and Africa-focused Safrik Investments have expressed some interest in acquiring Go First. It is not known whether Khona classified these three entities as non-serious. Meanwhile, earlier this week, the airline cancelled all flights through February 4, 2024.
