Wednesday, April 24, 2024

Risky jurisdiction: Aircraft lessors raise the alarm over Go First crisis

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Aircraft lessors have raised concerns over the financial crisis facing Indian low-cost carrier Go First, formerly known as GoAir, and the jurisdiction risks involved in leasing aircraft to airlines in India. Go First is currently facing a financial crisis, and lessors fear that the airline may default on its lease payments, leading to losses for the lessors.

According to industry sources, Go First has been struggling with financial issues for some time now, and its financial position has only worsened due to the impact of the COVID-19 pandemic on the aviation industry. The airline has reportedly been unable to make its lease payments on time, and several lessors have raised concerns about the situation.

The lessors have also highlighted the jurisdiction risks involved in leasing aircraft to airlines in India. They have pointed out that Indian courts have been slow in resolving disputes related to aircraft leasing, and the legal framework in India is not very conducive to lessors’ interests.

In light of the situation, several aircraft lessors are reportedly considering taking legal action against Go First, in order to protect their interests and recover their losses. However, the legal process in India can be time-consuming and uncertain, which has only added to the concerns of the lessors.

The crisis facing Go First is just the latest in a series of financial problems faced by Indian airlines in recent years. Many airlines in India have struggled with high debt levels, intense competition, and regulatory hurdles, which have made it difficult for them to remain profitable and sustainable in the long run.

In conclusion, the financial crisis facing Go First has raised concerns among aircraft lessors about the risks involved in leasing aircraft to airlines in India. The slow legal process and jurisdiction risks in India have only added to their concerns. It remains to be seen how the situation will evolve in the coming weeks and months, and whether Go First will be able to resolve its financial issues and avoid defaulting on its lease payments.

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