NCLAT allows Lessor Jackson Square to inspect Go First aircraft

The NCLAT on August 31 addressed Jackson Square Aviation’s appeal, allowing the aircraft lessor to inspect their leased planes with grounded airline Go First. Engine Lease Finance BV had already approached the tribunal with a similar request. On August 18, NCLAT modified the July 26 NCLT order to let the engine lessor inspect their four engines leased to Go First. The NCLAT disposed both appeals.

NCLT had earlier declined to prevent Go First from using leased aircraft, stating they were crucial for the airline’s viability. The tribunal noted that since the DGCA hadn’t deregistered the aircraft, they remained available for Go First’s operations, following safety regulations.

The lessors argued at NCLT that they’re exempt from the moratorium, as they terminated leases before the airline’s insolvency admission. However, NCLT refused their plea to restrict the airline from using the planes.

DGCA audits

Meanwhile, DGCA audits found maintenance gaps in Go First’s aircraft, leading to potential issues for the airline and lessors. Maintenance work orders were open due to staff shortages, affecting proper preservation.

DGCA conducted maintenance checks across major airports, uncovering problems. Go First’s financial and human capital shortages caused non-payment of employee salaries for June and July, prompting resignations.

The airline requested ₹100 crore in emergency funding, with ₹3 crore for repairs, ₹37 crore for salaries, ₹1.75 crore for ground support staff health insurance, and ₹20.50 crore for TDS and provident fund dues. Lenders approved the funding.

Go First has suspended operations till September 5.

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