On Monday, an Indian appeals tribunal upheld insolvency proceedings against cash-strapped airline Go First, making it harder for lessors to repossess their aircraft.
At least three leasing businesses, including GY Aviation Lease and SMBC Aviation Capital, contested a tribunal order awarding Go Airlines (India), known as Go First, bankruptcy protection earlier this month.
The airline blamed its financial problems on Pratt & Whitney engine issues, which grounded nearly half its Airbus (AIR.PA) A320 neo aircraft. U.S. engine maker calls claims “without merit.”
On Monday, the appeals tribunal said the National Company Law Tribunal would decide if lessors who canceled their contracts before bankruptcy can seize their aircraft.
Reuters requested a response from Go First Chairman Varun Berry.
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