Go First aircraft deregistration: Hurdles ahead for lessors in relocation efforts

The deregistration of Go First's 54 aircraft poses significant challenges for lessors, with industry experts foreseeing prolonged timelines for their relocation out of the country due to the dire need for engines and spare parts.

Among the fleet, approximately 24 aircraft were operational when the airline halted operations in May last year. Shockingly, these planes have not undergone continued maintenance since July. Furthermore, a staggering 30 aircraft are devoid of engines and essential components, exacerbating the relocation process.

The decision to deregister all 54 remaining aircraft of Go First came after a landmark ruling by the Delhi High Court on April 26, granting lessors the authority to reclaim leased planes. This move by the Directorate General of Civil Aviation (DGCA) signifies a major step in the restructuring of the airline, which is currently embroiled in an insolvency resolution process.

Sources close to the matter paint a grim picture of the airline's revival prospects, citing a dearth of assets following the deregistration of the planes. The daunting task ahead involves obtaining various approvals to ensure the airworthiness of the grounded aircraft, a process likely to prolong the relocation efforts.

According to insights shared by industry insiders, lessors are expected to encounter significant delays in ferrying the 54 planes out of the country, primarily due to the imperative need for engine replacements. Additionally, navigating through the regulatory framework to secure necessary approvals further complicates the relocation process.

Vishok Mansingh, CEO of aircraft leasing company Vman, sheds light on the operational status of the aircraft, revealing that 24 planes were airworthy until July but have since been neglected in terms of maintenance. Mansingh emphasizes the critical role of obtaining approvals from engine manufacturers Pratt & Whitney and Airbus for the technical ferrying of these aircraft to nearby Maintenance Repair and Overhaul (MRO) facilities.

While these aircraft may require minimal maintenance to be flight-ready, the process hinges on securing approvals from Pratt & Whitney and Airbus. Once these approvals are obtained, lessors anticipate a swift relocation timeline of three to four weeks for the airworthy planes.

However, the remaining 30 aircraft present a daunting challenge, with the majority lacking engines and essential spare parts. Mansingh underscores the potential timeline for relocating these aircraft, suggesting a timeframe of six months to a year contingent upon the availability of engines and spares.

Vman, a prominent aircraft leasing company based in GIFT City, closely monitors the evolving situation surrounding Go First's fleet. The airline, which operated for over 17 years, ceased operations on May 3 last year due to persistent financial turbulence exacerbated by Pratt & Whitney engine problems, resulting in the grounding of numerous aircraft.

Amid the insolvency resolution process, two bidders have emerged as frontrunners: Busy Bee Airways in collaboration with SpiceJet chief Ajay Singh, and Sharjah-based aviation player Sky One. The outcome of this process remains uncertain as the airline grapples with its restructuring efforts.

(With PTI inputs)