In a move that may further worsen Go First’s chances of revival, the Directorate General of Civil Aviation (DGCA) has told the Delhi High Court that the airline’s aircraft and engines can be returned to the lessors.
The regulator, in a filing, said that the amendment in the insolvency law that exempts aircraft objects from the ambit of the moratorium will be applicable retrospectively. The exemption under the Insolvency and Bankruptcy Code (IBC) came against the backdrop of various aircraft lessors launching legal battles to repossess planes leased to the grounded Go First, which stopped flying in early May and is undergoing an insolvency resolution process under the IBC.
