Today's hearing before the National Company Law Tribunal (NCLT) will continue as lessors argue against the moratorium on Go First's assets and obligations. India has been added to a watchlist with a negative outlook by the UK-based Aviation Working Group, despite the fact that the conflict between Go First and Pratt & Whitney is still playing out on the domestic front.
Why Was India Placed On A Watchlist With A Negative Outlook By The Aviation Working Group?
According to the international aviation watchdog, the nation disregarded international standards for aircraft seizure after Go First was given bankruptcy protection.
How Does This Action Affect India?
For the benefit of aircraft manufacturers and lessors, the UK-based Aviation Working Group keeps tabs on the legislation governing financing and leasing. This action would increase lease prices for Indian airlines and shake lessors' faith in the third-largest domestic aviation industry in the world.
In a letter that was also written to the Indian aviation minister, AWG warned Go First that such a perspective would “have a direct and material impact on future financings and leases to Indian airlines.”
The change occurs as Indian air transport is experiencing a boom and local airlines (which often use lessors to help finance aircraft acquisitions) have ordered hundreds of new planes.
In vs. Pratt & Whitney, Go First
Go Airlines Ltd. said that approximately half of its 54 Airbus A320neos were grounded due to Pratt & Whitney (P&W) “faulty” engines when it sought bankruptcy protection last week. P&W, a division of Raytheon Technologies, asserts that the airline's assertions lack support.
In an effort to reclaim their aircraft, lessors have aggressively fought Go First's bankruptcy resolution processes. The bankruptcy has being contested by three aircraft lessors. They have attempted to reclaim airplanes with the intention of exporting or releasing the aircraft to other operational airline operators. International outrage has also been raised about the protection given to Go First.