Go First crisis: Aviation leasing watchdog puts India on watchlist
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Aviation Working Group (AWG), a United Kingdom (UK)-based global aviation leasing watchdog, has placed India on its watchlist with a negative outlook in view of developments around the Go First Airlines crisis, reported Reuters. It said that the country had failed to comply with international aircraft repossession norms after Go First was granted bankruptcy protection.
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Go First filed for bankruptcy last week
In a letter to Go First, the AWG said such an outlook would "have a direct and material impact on future financings and leases to Indian airlines" and could hit lessors' confidence in the world's third-largest domestic aviation market. Notably, Go First approached the National Company Law Tribunal (NCLT) last week to seek protection from lessors and the Directorate General of Civil Aviation (DGCA).
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AWG's letter also sent to Civil Aviation Ministry
Even though some lessors had already terminated their leases with the airline, the NCLT ordered a freeze on Go First's assets and granted protection under a moratorium from adverse actions by lessors, lenders, regulators, airports, and oil companies. Reportedly, the letter by AWG was also sent to the Civil Aviation Ministry. Per Reuters, the ministry and the DGCA were not immediately available to comment.