DGCA Deregisters Go First's 54 Planes Amid Bankruptcy Crisis

In a significant development within the Indian aviation sector, the Directorate General of Civil Aviation (DGCA) has completed the deregistration of all 54 aircraft leased by the financially troubled airline Go First. This move comes shortly after the Delhi High Court's decision, which permitted lessors to reclaim their planes from the airline, now embroiled in bankruptcy proceedings. The budget carrier, known for its affordable flying options, ceased operations in May last year due to financial difficulties and persistent engine problems, marking a steep decline in its operational capabilities.

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The legal action initiated by foreign lessors to recover their aircraft culminated in a directive from the Delhi High Court on April 26. The court ordered the DGCA to immediately begin processing the lessors' applications for the deregistration of 54 planes. The authority was given a strict timeline, mandating completion within five working days. Confirming this directive's execution, a senior official from the regulatory body announced on Wednesday that all aircraft had been officially deregistered, with some notices being made publicly available on the DGCA's website.

Among the deregistered aircraft was an A320 plane with the registration number VT-WJL, officially removed from the registry on April 29. The application for this particular plane's deregistration was submitted on May 11, 2023, indicating a swift response from the regulatory body to comply with the court's order. The lessor of this aircraft is based in Ireland, highlighting the international implications of Go First's financial woes.

This deregistration process is governed by the Cape Town Convention's provisions, allowing lessors to utilize the Irrevocable De-registration and Export Request Authorisation (IDERA) in instances where an airline defaults on its lease agreements. This legal framework provides a mechanism for lessors to secure their assets in cross-border leasing disputes.

Go First's operational halt on May 3, 2023, was a precursor to its plea for voluntary insolvency resolution proceedings, which was accepted by the National Company Law Tribunal (NCLT) on May 10 last year. This development underscores the precarious financial health of some players within India's aviation industry and highlights the challenges faced by airlines in maintaining fleet operations amidst economic pressures.