Indian carriers are between a “rock and a hard place” due to the government’s October 3 notification, Air India’s general counsel Zubin Masani said on Tuesday. The notification bars insolvent airlines from citing Section 14 of the Insolvency and Bankruptcy Code, 2016, to halt lessors from reclaiming their planes.
Go First ceased flight operations on May 3 following the submission of an insolvency application to the National Company Law Tribunal (NCLT). On May 10, the tribunal imposed a moratorium on the airline’s assets, effectively preventing lessors from reclaiming their approximately 45 planes from the carrier. This decision has left lessors profoundly discontented.
