Go First, an Indian airline, may face difficulties in its recovery if a court grants the demands of aircraft lessors who seek certain records related to missing or deteriorating jet parts, according to legal documents filed by the carrier.
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The airline was granted bankruptcy protection in May, which blocked the recovery of more than 50 grounded Airbus planes, resulting in a legal dispute with foreign lessors seeking to repossess their aircraft. Recently, Dubai Aerospace Enterprise (DAE) Capital and ACG Aircraft Leasing raised concerns about allegedly "robbed" parts and corroding jets and requested the court to force Go First to provide maintenance and aircraft preservation records for their leased planes.
In response, Go First has challenged the lessors' demands, arguing that complying would be a time-consuming process that would impede its recovery efforts. The bankruptcy officer, Shailendra Ajmera, warned that obtaining such records would have far-reaching implications for the airline's daily operations and going concern status, and would significantly divert resources away from resuming operations. The filings, which were submitted on Sept. 8 and Sept. 17, are not public and are set to be heard by the court on Friday.
Neither Go First nor the two lessors have responded to Reuters' request for comment. In May, SMBC, the world's second-largest aircraft lessor, warned that India's decision to block leasing firms from reclaiming the airline's planes would have negative effects on the market and lead to a confidence crisis.