India stalls lessors' requests to reclaim Go First planes due to asset freeze (updated)

BOC Aviation

30/05/2023 10:32

(Adds details from the filing, context)
    By Aditya Kalra
       NEW DELHI, May 30 (Reuters) - India's aviation watchdog
has put on hold requests from lessors to repossess planes from
airline Go First as the carrier's bankruptcy process imposes a
freeze on assets which supersedes such requests, it said in a
court filing.
    Go Airlines (India) Ltd filed for bankruptcy protection
blaming its financial troubles on the grounding of about half
its 54 Airbus  AIR.PA  A320neos due to "faulty" Pratt & Whitney
engines. Pratt, part of Raytheon Technologies  RTX.N , says the
claims are without evidence.
    In granting bankruptcy protection, the Indian tribunal
ordered a freeze on Go First's assets even though some lessors
had already terminated leases and placed requests with the
aviation regulator to repossess more than 40 planes.
    The Directorate General of Civil Aviation (DGCA) said that
while the bankruptcy process is ongoing it cannot legally
approve repossession requests from lessors, leaving it "no other
option" but to keep all application "pending in abeyance".
    While the DGCA has not rejected lessors' de-registration
requests, they have been placed on hold, it said in the filing
seen by Reuters. 
    Go First's lessors, which include Standard Chartered's
Pembroke Aircraft Leasing, SMBC Aviation, CDB Aviation's GY
Aviation Leasing, Jackson Square Aviation and BOC Aviation, have
initiated separate legal action to reclaim their planes.

 (Reporting by Aditya Kalra in New Delhi, additional reporting
by Arpan Chaturvedi; editing by Jason Neely and David Evans)
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