Page 29 - Airlines

Termination of aircraft leases would have no consequence: Go First

Termination of leases for aircraft by their lessors would not have any consequence as the moratorium has been imposed under insolvency resolution proceedings, Wadia group air carrier Go First on Friday argued before the National Company Law Appellate Tribunal (NCLAT). While aircraft lessors on the other side raised doubts over the revival of Go First through the corporate insolvency resolution process (CIRP), citing the amount required to make it fly again. Senior advocate Arun Kathpalia representing SMBC Aviation said the average lease rent of per aircraft is around USD 2 lakh for a month and with more than 50 aircraft the monthly bill would be USD 10 million. "Cost of this misadventure is enormous," he said. For SMBC Aviation only, Go First has to pay USD 4.2 million per month, which includes maintenance and lease. SMBC Aviation Capital Ltd submitted that they have legal possession of their aircraft before the insolvency process started and as of today, Go First has no right for

SpiceJet starts process of reviving grounded airplanes with $50 mn

Budget carrier SpiceJet on Thursday said it has no plans to file for insolvency proceedings and has also started the process of reviving its grounded fleet with USD 50 million. The statement from SpiceJet comes at a time when a lessor has filed an insolvency resolution plea against the airline and crisis-hit rival Go First being admitted for voluntary insolvency resolution proceedings by the National Company Law Tribunal (NCLT) on Wednesday. While citing the recent developments in the Indian aviation market, SpiceJet said it has no plans whatsoever to file for insolvency. "We want to scotch any speculation that may have arisen due to the filing by another airline. The airline is firmly focussed on its business and remains in active talks with investors to raise funds," it said in a statement. On May 8, the NCLT issued a notice to the budget carrier on the insolvency plea filed by lessor AirCastle (Ireland) Ltd and the matter is scheduled for a hearing next week. Besides, lessors h

Go First needs to raise funds: Resolution professional tells staff

Go Airlines will need to raise funds to revive the bankrupt company amid plans to keep it as a going concern, the recently appointed resolution professional informed staff on Thursday

Go First files suit against engine maker, legal scene shifts to US court

After getting what it had prayed for before the National Company Law Tribunal (NCLT), the legal scene now shifts to a US court where Go Airlines (India) Ltd has filed a suit against the aircraft engine maker Pratt & Whitney.

NCLT admits Go First's insolvency plea, puts it under moratorium

Order prevents a viable airline from becoming an unviable one, says airline's CEO

Air India pilot union not keen on accepting revised compensation structure

Members of Air India's two pilot unions held a joint meeting on Tuesday to discuss the airline's revised compensation structure, and a large section of them remained firm on their stance of not signing the new contracts, according to a source. The airline has given more time till the end of this week for pilots to decide on signing the new contracts. The initial deadline for accepting the revised compensation structure ended on April 30. The Indian Commercial Pilots Association (ICPA) and the Indian Pilots Guild (IPG) held a joint virtual meeting of their members to discuss the new service terms as well as the future course of action. On April 17, the Tata Group-owned carrier came out with a revised compensation package and new service terms and conditions for pilots and cabin crew of Air India, Air India Express and AIX Connect. The two unions had rejected the new service terms, saying they were unilateral, draconian and anti-labour. "At the meeting on Tuesday, largely the view w

Lessors approaches regulator DGCA to deregister three planes of SpiceJet

In further headwinds for struggling SpiceJet, lessors have approached aviation regulator DGCA for deregistration of three planes of the airline. Many aircraft of the budget carrier are grounded due to various reasons. The airline's three lessors -- Wilmington Trust SP Services, Sabarmati Aviation Leasing and Falgu Aviation Leasing -- have sought deregistration of one aircraft each, according to an update on the regulator's website. The latest development comes a day after the National Company Law Tribunal (NCLT) issued a notice to the Ajay Singh-promoted private carrier on a petition filed by an aircraft lessor seeking initiation of insolvency resolution proceedings against it. "Two of the three planes are grounded for a long period now and the same doesn't affect our operations," a SpiceJet spokesperson said in a statement. "We are in discussion to resolve the matter. We have been working to bring back our grounded fleet basis the loan sanctioned under the ECLGS (Emergency Credit

Prez Joe Biden wants airlines to pay passengers in US for lengthy delays

The US Department of Transportation did not specify how much cash it aims to require airlines to pay passengers for significant delays

Go First extends flight cancellations till May 12, awaits NCLT's order

The extension comes as the National Company Law Tribunal reserved its order on Go First's plea for an interim moratorium

NCLT to hear two insolvency petitions filed against Go First on May 8

As Go First awaits the NCLT ruling on its voluntary insolvency resolution plea, the tribunal is set to hear on Monday two petitions seeking insolvency proceedings against the crisis-hit airline. With liabilities of Rs 11,463 crore and a financial crunch, the Wadia group-owned airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on financial obligations. After hearing the plea on Thursday, the National Company Law Tribunal (NCLT) reserved its order. The tribunal is set to hear two insolvency petitions filed against the airline on Monday, according to lawyers. The petition filed by SS Associates Services Pvt Ltd, which was providing transport services to the carrier, is with respect to a claim of around Rs 3 crore. A pilot has also filed a petition claiming dues for his services provided to the airline. The amount involved is more than Rs 1 crore. The two petitions are scheduled to be heard by the Principal Bench of the NCLT. Go First, in

Tata Group airlines see most improvement in on-time performance in April

IndiGo, India's largest carrier, saw its on-time performance fall from 92.43 per cent in March to 89.97 per cent in April

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Need more rational airfares in country, says SpiceJet CEO Ajay Singh

SpiceJet CEO Ajay Singh on Thursday said there is a need for "more rational airfares" in the country even as he tried to assuage concerns of a hike in airfares as a consequence of competitor Go First filing for voluntary insolvency by terming it a "temporary phenomena". He termed the Go First development as "extremely unfortunate" and expressed hope that the airline can use this opportunity to resolve their issues. Asked about concerns on hike in airfares as a consequence of competitor Go First filing for voluntary insolvency, the SpiceJet chief said: "Those are temporary phenomena". "Of course when there is a mismatch of supply and demand, airfares will go up but this settles quite nicely as you would have seen the last time an airline went down there was a temporary period of mismatch and the capacity came into the system and fares were back to normal," Singh said. He further said that while the era of low airfares has helped in boosting air travel in this country, sometimes it h

Pratt & Whitney's engine woes cost Go Air 47 years worth of flying time

Go Airlines was re-branded Go First ahead of a planned 36 billion rupee ($440 million) initial share sale last year

NCLT to hear cash strapped Go First Airway's insolvency plea on May 4

The National Company Law Tribunal tribunal (NCLT) on Thursday will hear cash-strapped air carrier Go First's voluntary insolvency resolution plea. The petition for initiation of voluntary insolvency resolution proceedings was mentioned before the Delhi-bench headed by President Justice Ramalingam Sudhakar. The bench has agreed to an urgent hearing and directed to list the matter on Thursday for hearing. The Wadia group-owned carrier has moved the National Company Law Tribunal (NCLT), Delhi, seeking voluntary insolvency resolution proceedings. Section 10 of the Insolvency & Bankruptcy Code, allows a debtor to initiate an insolvency resolution process against itself if it has committed any default. Go First is the second major scheduled airline after Jet Airways to seek resolution under insolvency proceedings. The airline, which has been grappling with engine issues since January 2020, said it has been forced to move the NCLT as P&W refused to comply with an order issued by the .

Go First saga: The engine dispute at the heart of bankruptcy filing

(Reuters) - Cash-strapped Indian airline Go Airlines (India) Ltd, recently rebranded as Go First and previously as Go Air, filed for bankruptcy on Tuesday, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet.

Doing everything possible with utmost care for employees: Go First CEO

Go First chief Kaushik Khona has told employees that the airline has been crippled by recurring Pratt & Whitney engine troubles and assured that the carrier is doing everything possible to navigate the situation with utmost care and concern for all staff. The no-frills carrier has filed an application for voluntary insolvency proceedings and has also cancelled all its flights for three days starting Wednesday. In a message to employees late on Tuesday, Khona said that a terrible crisis has been created by Pratt & Whitney's failure to supply engines. For more than 12 months, the airline's management has tried their level best to convince P&W to provide spare engines, repair engines. However, P&W has been stonewalling the discussions, the CEO said, adding that it moved Emergency Arbitration in Singapore. According to the airline, the arbitrator ordered P&W to supply at least 10 serviceable spare leased engines by April 27 and a further 10 spare leased engines per ...

Go First saga: SpiceJet to revive 25 grounded aircraft, mobilises Rs 400 cr

The funds for revival will be drawn from the Centre's Emergency Credit Line Guarantee Scheme (ECLGS) and better cash accruals, the airline said in a statement

Go First has history of missing financial obligations: P&W on allegations

In its insolvency filing, Go First said that the 'ever-increasing number of failing engines supplied by Pratt & Whitney's international Aero Engines' led to the grounding of 25 of its A320 neo jets

Go First Airways owes financial creditors $798 mn, shows bankruptcy filing

Lenders were not aware of the airline's plans to file for voluntary insolvency and will meet soon to take stock of the situation, the report said