On Monday, Go Airlines urged India's company law tribunal to quickly approve its request for bankruptcy protection while facing increased pressure from the aviation regulator to halt ticket sales and from lessors who are seeking to take back planes.
Following the grounding of around half of its 54 Airbus A320neo planes due to "faulty" Pratt & Whitney engines, the airline filed for bankruptcy protection last week. The airline has a total of 57 planes.
Despite Go First's bankruptcy plea being heard by the National Company Law Tribunal last week, no order has been passed yet. This has allowed lessors such as GY Aviation Lease, SMBC Aviation Capital, and Pembroke Aircraft Leasing to take action to secure their assets.
These leasing companies have requested India's aviation regulator to repossess at least 20 planes.
During Monday's court hearing, attorneys representing financially-struggling Go Airlines expressed concern that the lessors' actions could worsen the airline's already difficult situation.
Meanwhile, a source with direct knowledge of the matter said that India's aviation regulator has instructed Go First to halt the issuance of new tickets.