BOC Aviation has moved the National Company Law Tribunal (NCLT) to secure an Airbus A320Neo aircraft that it has leased to Go First, the cash-strapped airline.
BOC Aviation (BOCA) made the application after an appellate court on Monday upheld NCLT’s order admitting Go First's insolvency petition.
The appellate court’s order is a setback for lessors like BOCA that have sought repossession of 45 of Go First's 54 aircraft for rental default.
BOC Aviation’s application said its aircraft be kept out of the moratorium granted to Go First. The lessor's application is expected to be heard on Wednesday or Thursday.
When the National Company Law Appellate Tribunal (NCLAT) upheld the NCLT order, it allowed both Go First and leasing companies to approach the insolvency court to decide on moratorium. Accordingly, BOC moved its application seeking directions from the insolvency court.
"If we are able to secure a favourable order for BOCA, it will set a good precedent for other lessors," said Ajay Kumar, Managing Partner, KLA Legal.
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Pembroke Aircraft Leasing has separately approached the Delhi High Court seeking deregistration of Airbus A320Neo aircraft leased to Go First.
Twelve companies have leased the 54 aircraft Go First. As many as 28 of these aircraft are grounded due to engine woes.
Go First's 54 aircraft have an estimated market value of over $ 1.8 billion, according to aviation consultancy Cirium. Of these planes, ten each are leased by CDB Aviation and SMBC Aviation Capital. Jackson Square Aviation has the third largest exposure (in units) with eight aircraft.