India's Aviation Regulator Halts Lessors' Requests To Repossess Go First Planes Amid Bankruptcy Proceedings

India's aviation regulator has halted requests from lessors to repossess planes from Go First airline, citing the carrier's ongoing bankruptcy proceedings, which override such requests, according to a court filing.

Go Airlines (India) Ltd filed for bankruptcy, blaming its financial woes on the grounding of about half of its 54 Airbus (AIR.PA) A320neos due to "faulty" Pratt & Whitney engines. Pratt, a subsidiary of Raytheon Technologies (RTX.N), argues the charges are without merit.

The Indian tribunal ordered a block on Go First's assets when it granted bankruptcy protection, despite the fact that several lessors had already cancelled leases and filed repossession petitions with the aviation regulator for more than 40 planes.

While the bankruptcy process is underway, the Directorate General of Civil Aviation (DGCA) stated that it cannot lawfully authorise repossession demands from lessors, leaving it with "no other option" except to hold all applications "pending in abeyance."

While the DGCA did not deny lessors' de-registration requests, it did put them on hold, according to a filing obtained by Reuters.

Lessors of Go First aircraft, including Standard Chartered's Pembroke Aircraft Leasing, SMBC Aviation, CDB Aviation's GY Aviation Leasing, Jackson Square Aviation, and BOC Aviation, have taken separate legal proceedings to reclaim their aircraft.