NEW DELHI: Indian carriers going bankrupt in the future will no longer be able to hold on to their leased aircraft and engines under the asset protection
(moratorium)
provided for a limited time by the Insolvency and Bankruptcy Code (IBC), like GoAir. A gazette notification issued to this effect by the Union corporate affairs ministry on Tuesday (Oct 3) comes as a huge relief to Indian airlines as the GoAir fiasco had made lenders wary of giving aircraft and engines to them, especially the financially weak ones. International leasing companies had raised red flags on this issue which meant that apart from strong players including Tata group airlines and IndiGo, other airlines here would have found lease costs rising due to lessors perceiving increased risk of having their assets stuck here for months if the airline files for bankruptcy under IBC.
