Go First might have six of its aircraft owned BOC Aviation and Celestial Aviation deregistered over unpaid dues. If the aircraft are deregistered the airline will be left with only 30 aircraft ahead of the peak summer season.
According to sources, the negotiations regarding lease extensions are not going as planned.
Business Line quotes a source: “Conversations with the lessors do not seem to be going as planned. Despite giving them multiple extensions, the airline hasn't been able to pay back the dues. Go First asked for another extension but the lessors aren't likely to reconsider.”
As per media reports, around the exact amount is unclear, however the airline owes $60-70 million towards one of the lessors and $20-30 million cumulatively towards the others.
Go First has been facing problems since the resumption of passenger traffic in India, mostly due to grounding of planes due Pratt & Whitney engine issues for the want of spares. The airline is also planning to take legal action against Pratt & Whitney to provide with replacement engines or compensate for losses.
The deregistration of another six aircraft will be a huge issue for the airline on the backdrop of strong recovery and rising passenger demand ahead of peak summer season.