Go First lessors have approached the Directorate General of Civil Aviation, India (DGCA) to deregister and export 20 aircraft. The Dubai-based lessors that have put forward de-registration requests are Narmada Aviation Leasing, Yamuna Aviation, Banas Aviation, EOS Aviation, JSA Aircraft, SMBC Aviation Capital, GY Aviation and Pembroke Aviation Leasing.
The maximum number of de-registration requests have been received from GY Aviation for ten aircraft, followed by SMBC Aviation for four aircraft, for one aircraft each by Narmada Aviation Leasing, Yamuna Aviation Leasing, Banas Aviation, EOS Aviation, JSA Aircraft, and Pembroke Aircraft
Under Irrevocable De-registration and Export Request Authorisations (IDERA), the civil aviation regulator is required to de-register aircraft within five days from the name of a third party in cases like default of lease rentals.
The airline wants the tribunal to accept its plea and is seeking an interim moratorium to save its assets, a move the lessors opposed.
Meanwhile, even as the lessors and airline lock horns banks with exposure to it are awaiting the tribunal’s decision to decide their next course of action, two people involved in the talks told Reuters.
“Since individual bank exposures are not high and some portion of it is guaranteed by the government, banks are preferring to wait it out till the NCLT order is out,” said one of the bankers.
The bankers sought anonymity as the talks were private.
Central Bank of India Ltd, Bank of Baroda, IDBI Bank Ltd and Deutsche Bank are among Go First’s financial creditors, a court filing shows.
Although the government has not yet nudged the involved banks to take any specific action, one of the sources said the banks were open to the idea of restructuring.
Central Bank of India has said its exposure to the airline, at 0.91% of its total advances, was 13.05 billion rupees by the end of March, with an additional 6.82 billion sanctioned under a government-backed emergency credit guarantee scheme.
The de-registration requests have been made for 16 Airbus A320neo airplanes which are powered by Pratt & Whitney engines and four Airbus 320 aircraft fitted with CFM engines.
On May 2, Go First voluntarily filed for insolvency at the principal bench of National Company Law Tribunal and has cancelled flights from May 3 to May 15. The airline has informed that it has also stopped taking bookings until May 15.