GoFirst Grounded DGCA Deregisters Entire Fleet Amid Bankruptcy Woes

The Directorate General of Civil Aviation (DGCA) has taken decisive action by deregistering the entire fleet of GoFirst, formerly known as GoAir, following a court order on April 26.

This move comes amidst mounting financial challenges faced by the airline, culminating in bankruptcy proceedings and the grounding of its aircraft fleet. According to sources familiar with the matter, a total of 54 aircraft belonging to GoFirst have been grounded across various airports in the country, marking a critical juncture in the airline’s operational trajectory. Of these, 23 aircraft were grounded at Delhi airport, while nine were stationed at Mumbai airport. Additional aircraft were grounded at airports in Kannur, Nagpur, Hyderabad, Kochi, Ahmedabad, and Goa Mopa Airport, underscoring the widespread impact of the regulatory action.

A senior official reiterated the DGCA’s commitment to ensuring airworthiness and safety standards, stating that the grounded aircraft are undergoing thorough examinations to obtain airworthiness certificates. Once certified, these aircraft will be handed over to their lessors and subsequently exported, in accordance with regulatory protocols outlined under Rule 32A of the aircraft rules. The airline’s bankruptcy filing attributed its financial woes to engine issues with Pratt & Whitney, a US-based aircraft engine manufacturer, which led to the grounding of a significant portion of its fleet. Sources within the industry revealed that GoFirst owes substantial sums to its creditors, exacerbating its financial predicament and precipitating regulatory intervention.

The decision to deregister the aircraft comes in the wake of a request made by GoFirst lessors to the Delhi High Court last year, seeking deregistration in light of exemptions provided under the Insolvency and Bankruptcy Code (IBC), 2016. The Ministry of Corporate Affairs’ notification, issued on October 3, exempted aircraft, engines, and airframes from the moratorium under the IBC, further complicating the airline’s restructuring efforts. As GoFirst navigates through turbulent skies, the deregistration of its fleet underscores the formidable challenges facing the aviation industry and the imperative for regulatory vigilance in safeguarding operational integrity and passenger safety.