Go First may have to sign new leases before relaunch

Go First must sign fresh lease agreements for 30-35 aircraft since lessors have already terminated the previous ones following its insolvency filing, two people aware of the development said, delaying the low-fare airline’s plans for a quick return to skies.

- Anu Sharma & Anirudh Laskar

“While the airline is making active efforts to relaunch flight operations, it will need to re-enter into fresh lease agreements or get the termination revoked by the lessors in case it wants to operate these 30-35 aircraft whose lease agreements were terminated around the time the airline filed for insolvency," one of the two people said.

Go First filed for insolvency on 2 May and suspended operations with effect from 3 May, leaving a void of 6.8% in the domestic civil aviation market. Following this, its lessors terminated leases and sought to regain control of planes. The airline was operating a fleet of 27 aircraft when it filed for insolvency. The Wadia Group, the airline’s former promoters, has blamed engine manufacturer Pratt & Whitney for its predicament, stating it had to ground 30-50% fleet on average since 2020 due to engine scarcity.