Page 24 - Aviation

Engine Leasing Finance moves to NCLAT against Go First's insolvency

After three aircraft lessors, Engine Leasing Finance BV has moved the National Company Law Appellate Tribunal (NCLAT), opposing the insolvency resolution proceedings initiated against Go First. Ireland-based Engine Leasing Finance is a leading engine financing and leasing company. It is a group entity of Japan-based Mitsubishi HC Capital Inc. A two-member NCLAT bench on Tuesday heard the plea of Engine Leasing Finance and reserved its order. The appellate tribunal said it will pass the order on May 22 along with the other three petitions. "Orders on 22.05.2023. Short written notes may be filed within two days by both the parties," it said. Three aircraft lessors -- SMBC Aviation Capital Ltd, GY Aviation and SFV Aircraft Holdings -- have moved the NCLAT against Go First's insolvency resolution proceedings. These lessors have leased out around 21 aircraft to Go First. On May 10, the National Company Law Tribunal (NCLT) allowed the voluntary insolvency resolution plea by Go First.

Banks tighten rules around lending money to airlines after Go Air crisis

Repeated company failures dent the entire aviation industry's creditworthiness, the chief financial officer of an airline said

Akasa Air expands its training centre, can train over 700 professionals

Akasa Air has expanded its training and development centre, which can train more than 700 aviation professionals, including pilots, cabin crew, engineers and airport services and security personnel. As the less-than-a-year-old carrier, which has more than 2,500 staff, announced its expansion on Monday, Founder and CEO Vinay Dube said, "we are confident about our future and continue to invest in it. Nothing we do at Akasa is short term in nature". In recent days, the country's fast-growing civil aviation sector has witnessed turbulence with budget carrier Go First suspending flights since May 3 and later going into resolution proceedings under the insolvency law. According to a release, Akasa Air has inaugurated the second phase of the Akasa Air Learning Academy (AALA) in Gurugram. In July 2022, Akasa Air had invested in a 14,000 sq feet, dedicated learning academy. "This new facility adds another 20,000 square feet of world-class, technologically forward, learning capabilities fo

Concerned about aircraft lease rates if NCLT order stands: Boeing

India introduced a Bill in 2018 and a new Bill in 2022 to implement the CTC, but it has not yet been passed by Parliament

Air India looks to operationalise engineering warehouse in Delhi next month

Air India on Friday said it aims to operationalise an engineering warehouse near Delhi airport next month which will help resolve aircraft defects at a faster pace, and also indicated that pilots from Go First are looking to join the airline. Under the ownership of Tata Group, loss-making Air India is working on reviving the airline and among others, is aggressively hiring pilots and cabin crew as well as making various technological upgrades. In a message to employees on Friday, Air India CEO and MD Campbell Wilson said the airline has finalised an agreement for setting up a 57,000 square feet engineering warehouse near the airport in the national capital. "An agreement for a new 57,000 sq ft engineering warehouse near Delhi Airport was reached. It aims to be operational next month, giving us more proximate access to and better control over our aircraft spares so we can resolve defects faster," he said. Details about the investment for the facility could not be immediately ...

Govt to re-allocate Go First's Haj flights to IndiGo, two Saudi carriers

The government has decided to re-allocate the Haj flights that were to be operated by crisis-hit Go First from 10 Indian cities to IndiGo and two Saudi Arabian airlines, a senior official said on Thursday. The decision comes against the backdrop of the uncertainty over cash-starved Go First, which has cancelled all flights since May 3. The budget airline's plea for voluntary insolvency resolution proceedings has also been admitted by the National Company Law Tribunal. After discussions in the wake of the Go First crisis, the civil aviation ministry has decided to reallocate the flights for the Haj pilgrimage that was to be operated by the carrier. Go First is scheduled to operate the flights from 10 embarkation points in different parts of the country and now those flights will be operated by IndiGo and two Saudi carriers -- Saudia and flyadeal, the official told PTI. For this year's Haj pilgrimage, the official said there will be a total of 22 embarkation points. Out of them, Go .

Voluntary insolvency by Go First a fraudulent exercise: SMBC to NCLAT

Initiation of insolvency by Go First was a "fraudulent exercise", alleged one of the aircraft lessors of the Wadia group firm SMBC Aviation Capital Ltd before the National Company Law Appellate Tribunal (NCLAT). SMBC Aviation Capital through its counsel Arun Kathpalia submitted that it has already terminated its lease with Go First before the moratorium and it now wants to repossess those aircraft through insolvency. "Go First has no rights over the planes, which it does not own," he said. Moreover, he also questioned the proceedings at the National Company Law Tribunal (NCLT), which completed its hearing over Go First's plea to voluntarily initiate insolvency proceedings against itself in one day only. Lessors opposing Go First's plea wanted to file a reply under Section 65 of IBC, which deals with fraudulent or malicious initiation of proceedings. However "Instead of giving an opportunity, we were denied," Kathpalia added. He further said prior to insolvency, the lease with Go

Go First's bank loans to be classified as 'bad', but has strong collaterals

The Indian central bank's rules for handling substandard assets says banks have to provision for at least 15% of total outstanding loans on secured assets in the first 12 months

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

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

DGCA orders Go First to stop selling air tickets with immediate effect

Aviation regulator DGCA on Monday directed crisis-hit Go First to immediately stop bookings and sale of tickets directly or indirectly till further orders, according to a source. Besides, the watchdog has issued a show cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner, the source said. Earlier, the airline had suspended the sale of tickets till May 15 and has cancelled flights till May 12. The carrier has filed a plea for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), which has reserved its order. The source said the airline has been directed to stop the booking and sale of tickets directly or indirectly, with immediate effect and until further orders. The airline has been asked to submit its reply within 15 days of the receipt of the show cause notice, and further, a decision on the continuation

Go First insolvency will impact investor confidence: SpiceJet's Ajay Singh

'The factors behind the Go First crisis were beyond its control'

Go First insolvency: Spot airfares rise on the airline's top routes

Go First's third busiest route was Delhi-Leh route where the airline was scheduled to operate 66 flights per week this month

One domestic airline on average went belly up every year in three decades

One scheduled airline on an average has gone out of business every year since private airlines took to the skies nearly three decades ago, with Wadia group-owned Go First being the latest carrier battling financial turbulence for survival. The first private airline to go belly up was East West Travels & Trade Link Ltd, which shuttered operations after almost two years in November 1996. The same year, ModiLuft Ltd also went out of business. Since 1994, the year when private airlines took off in the country, at least 27 scheduled carriers have either been shuttered or have been acquired or merged with other carriers, according to official data. While the country's domestic aviation sector is on an upswing with strong traffic recovery post-pandemic, Go First is grappling with severe financial crunch due to non-availability of Pratt & Whitney engines that has resulted in grounding of more than half of its fleet. Three scheduled airlines -- Zexus Air Services Pvt Ltd, which ...

Go First owner Wadia Group has no plans to sell its stake in airlines: CEO

BENGALURU (Reuters) -Go Airlines (India) Ltd owner Wadia Group is completely committed to the airline and had no plans to exit it, the airline's chief executive told Reuters in an interview on Wednesday.

Wadia Group not exiting; some people have shown interest in Go First: CEO

On Tuesday, Go First filed for bankruptcy with the National Company Law Tribunal, blaming Pratt & Whitney engines for the grounding of about half its fleet

DGCA issues show cause notice to Go First after airline cancel flights

Aviation regulator DGCA on Tuesday issued a show cause notice to Go First after the airline decided to cancel flights for two days amid a severe financial crunch. The crisis-hit airline has cancelled all their scheduled flights for May 3 and 4 "without any prior intimation", the Directorate General of Civil Aviation (DGCA) said in a statement. "Since Go First has failed to adhere to the approved schedule leading to passenger inconvenience, this is non-compliance with the condition for approval of the schedule. "The airline has been called upon to show cause as to why suitable action should not be initiated against the airline for the aforesaid violation," it said. Go First has been asked to submit its response to the DGCA within 24 hours. Further, the watchdog has directed the carrier to submit the details of the steps taken to mitigate the inconvenience caused to the passengers booked on flights for May 3 and 4. The airline also has to submit its plan of action to operate flight

Domestic air traffic touches all-time high on Apr 30: Jyotiraditya Scindia

Domestic air traffic touched an "all-time high" of 4,56,082 passengers in a single day on Sunday, with Civil Aviation Minister Jyotiraditya Scindia saying that the skyrocketing passenger number is a sign of the country's rising prosperity. The country's domestic air traffic has been on the recovery path for the past many months after being severely hit by the coronavirus pandemic. "Indian Domestic Air Travel Hits New High, surpasses pre-Covid Average", on April 30, the civil aviation ministry said in a tweet on Monday. A total of 4,56,082 passengers flew on 2,978 flights on Sunday, as per the ministry. "India's domestic air traffic reaches new heights with an all-time high!" it said. Prior to Covid, the average daily domestic passenger number was 3,98,579. In a tweet, Scindia said that the country's civil aviation sector is setting new records every day. Post Covid, skyrocketing domestic air passenger number is a sign of the country's rising growth and prosperity, he added. In

SpiceJet to operate more flights to evacuate people under Operation Kaveri

SpiceJet on Monday said it plans to operate more flights from Saudi Arabia to different Indian cities to bring back people evacuated from Sudan under 'Operation Kaveri'. The no-frills airline operated a flight from Jeddah to Kochi on April 30 and brought back 184 Indians under Operation Kaveri. In a release, the carrier said it is in regular touch with the Ministry of External Affairs and the Indian Embassy in Saudi Arabia to coordinate further evacuation efforts. "More evacuation flights from Saudi Arabia to different cities in India are being planned," it said. The airline operates daily flights from Jeddah to Calicut, Delhi and Mumbai. It also has daily services from Riyadh to Delhi. Under 'Operation Kaveri', a total of 2,140 Indians have been brought back from strife-torn Sudan, according to official data. Earlier, SpiceJet helped in evacuating more than 1,600 students under Operation Ganga by operating special flights to Budapest, Kosice and Suceava.