Delhi HC asks DGCA to deregister 54 leased Go First planes

NEW DELHI: In a setback for Go First, the Delhi High Court on Friday directed the country’s aviation regulator Directorate General of Civil Aviation (DGCA) to go ahead with the process of deregistering 54 aircraft leased by the grounded airline within the next five working days.

“DGCA shall forthwith and not later than five working days process the deregistration applications filed by the 54 aircrafts,” the court said. This order has the capability to derail the revival process of the airline as it would leave minuscule assets for the two interested bidders.

It is also a big setback for creditors of the airline who were looking to trim their exposure from the insolvency process. Resolution professional of the airline, Shailendra Ajmera of consultancy firm EY, has admitted claims of Rs 4,254 crore from the financial creditors. Including operational creditors, the total admitted claims stand at about Rs 6,188 crore.

Two parties (a consortium led by SpiceJet’s Ajay Singh and Nishant Pitti’s Busy Bee Airways, and another one from Sharjah-based Sky One) have submitted bids to take over the airline. According to reports, Singh and Pitti have jointly submitted a bid of Rs 1,600 crore for the airline.

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