After Knocking the Doors of Justice for Quite Some Time, Go First Lessors Finally get Some Relief

The Hon’ble Delhi High Court, in a combined order  in favor of the Go First Lessors, granted interim relief qua maintenance and preservation of the Aircraft leased to insolvent Go First and observed that:

“The 30 Aircraft are ‘assets’ owned by the Petitioners which were previously under a contractual agreement i.e., the Lease Agreement(s) with the corporate debtor. Explanation (a) to Section 18 of IBC excludes assets owned by a third party in trust or contractual agreement …….

………

Thus, prima facie, the IRP is not required to take control of the same under the provisions of the IBC.”

8 lessors owning 30 Aircraft have filed a writ petition in the Delhi High Court seeking a writ of mandamus, directing deregistration of the respective Aircraft owned by them and facilitating the export and physical possession of these aircraft. 

The Court has stated on record that though by this order it is deciding the interim applications as filed by the Petitioners, the parties have almost substantially argued the matter.

Brief Summary of the Observations and Directions of the Court:

• The Court opined that in accordance with the unambiguous provisions of the Lease Agreements(s), which gave the right to terminate the Lease Agreements(s) on an occurrence of an event of default (Non-payment of lease rental; Voluntary Bankruptcy; and Involuntary Bankruptcy), the Petitioners had the authority to apply for deregistration of the Aircraft by filing an application with the Directorate General of Civil Aviation (DGCA), without the consent of the Lessee (Go First), which is what was done by them. Moreover, the provisions of the Aircraft Act, 1934 and the Aircraft Rules inter-alia provide that no person shall use and operate an Aircraft unless it is in accordance with the Aircraft Rules. 

Rule 5 (registration etc. of an Aircraft) states that unless an Aircraft has been registered and it bears its nationality and registration marks, it shall not be flown. Thus, once an event of default has occurred and the Petitioners have terminated the Lease Agreement(s) commenced the process of de-registration of the Aircraft, which cannot be flown.

• Relying on the judgment in the case of Awas 39423 Ireland Ltd. & Ors. v. Directorate General of Civil Aviation & Anr. , wherein a coordinated bench of this Court has dealt with Rule 30(7) of the Aircraft Rules, this Court observed that: “….the Respondent/DGCA has to proceed in accordance with Rule 30 (7) of the Aircraft Rules and the Court cannot interfere even on the grounds of equity; keeping in mind, the protection of private business transaction law in India, international conventions such as Cape Town Convention must be followed; the disputes qua validity of the termination of the lease are not relevant for the purposes of deregistration, and the contention that public interest will be impinged if the deregistration is granted is not a valid ground for refusal.”

• In response to the main defence raised by the Respondent/Go Air, represented by Interim Resolution Professional/Resolution Professional (IRP/RP), that issues raised by the Petitioners ought to be considered by the NCLT and this Court does not have the jurisdiction to entertain the present Writ Petition, the Court observed that the provisions qua registration/deregistration of an Aircraft are inter-alia subject matter of the Aircraft Act and Aircraft Rules framed thereunder and the Petitioners have approached this Court alleging on a failure of the Respondent/DGCA to comply with these provisions, which amounts to administrative action and the Hon’ble Court is well within their rights to do so. The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are statutory bodies constituted under the provisions of Sections 408 and 410 respectively of the Companies Act, 2013 and have the powers to adjudicate upon matters which relate to the Insolvency and Bankruptcy Code (IBC). 

• The Court after concluding that in accordance with Section 18 of IBC, the IRP is not required to take control of the Asset/Aircraft and because the Petitioners have made out a strong prima facie case in view of the provisions of the Aircrafts Rules, passed the following directions:

• The Petitioners, their employees, agents, officers and/or representatives shall be permitted by the Respondent/DGCA and the appropriate Airport Authorities to access the Airport(s) where the 30 Aircraft are parked inter-alia to inspect their respective Aircraft.

• The Petitioners and their authorized personnel shall be allowed to inspect and perform maintenance tasks on all 30 aircraft at least twice a month until the final resolution of the writ petitions.

• GoAir, its employees, and representatives are forbidden from removing or replacing any accessories, parts, or documentation from the 30 aircraft without written approval from the lessor of such Aircraft.

• With respect to MSN 6072, whose Certificate of Registration and Certificate of Airworthiness have expired, and several mandatory maintenance tasks are overdue, Respondent/DGCA shall permit the Respondent/RP to carry out the mandatory maintenance/engine runs of this Aircraft until its de-registration.

The interim relief order dated 05.07.2023 has not yet attained finality and can be challenged by the Respondents before a division bench of the Delhi High Court as has been submitted by the Respondents before the NCLT in the IBC proceedings. 

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Disclaimer: This article is intended for general information only and does not constitute legal or other advice. AviLeague Partners do not claim that the article’s content or information is accurate, correct or complete, and disclaims all liability for any loss or damage. 

Bismillah Airlines, a well-established cargo carrier headquartered in Dhaka, Bangladesh, is known for its extensive domestic and international flight network. With a strong commitment to providing efficient logistics solutions, the airline has gained recognition for its reliable services and commitment to customer satisfaction. In a bid to enhance its operations further, Bismillah Airlines is embarking on a new chapter by embracing Airbus A321 freighters.

The Recovery of the Travel Industry

After facing a severe setback due to the COVID-19 pandemic, the travel industry is gradually recovering. As vaccination rates increase and travel restrictions ease, passenger confidence is growing, leading to a surge in travel demand. Airlines are witnessing a significant uptick in bookings, prompting them to expand their operations and meet the rising needs of travelers.

Bismillah Airlines' Shift Towards Airbus A321 Freighters

The decision to transition to Airbus A321 freighters marks a pivotal moment for Bismillah Airlines. By adopting this advanced aircraft model, the airline aims to bolster its cargo transportation capabilities, ensuring faster and more efficient deliveries. The Airbus A321 freighter is renowned for its versatility, capacity, and fuel efficiency, making it a desirable choice for cargo carriers seeking to optimize their operations. Bismillah Airlines recognizes the potential of this aircraft in meeting the evolving needs of its customers.

Recruitment Call for A321 Crews

To support its foray into A321F operations, Bismillah Airlines has initiated a recruitment drive for qualified professionals. The airline is seeking captains and first officers with expertise in operating Airbus A321 freighters. Additionally, instructors, maintenance personnel, and engineering professionals specializing in the A321 model are also being sought. The selected individuals will be stationed in the capital city of Bangladesh, Dhaka, and will play a crucial role in the successful integration of A321F aircraft into Bismillah Airlines' fleet.

Transition to Airbus A321 Freighters

With the decision to embrace Airbus A321 freighters, Bismillah Airlines is aligning itself with one of the most technologically advanced and efficient aircraft in the cargo industry. The A321F offers several advantages, including a higher payload capacity, fuel efficiency, and an extended range, making it an ideal choice for cargo operations. This transition reflects the airline's commitment to staying ahead of the competition and meeting the evolving demands of its customers.

The Significance of A321F Operations

The decision to focus on Airbus A321 freighters reflects Bismillah Airlines' commitment to adapt to industry demands and enhance its cargo services. The A321F's cargo capacity and range make it an excellent choice for both short-haul and long-haul operations. With an expansive route network, Bismillah Airlines aims to leverage the A321F's capabilities to connect various destinations seamlessly, catering to the increasing demands of the global cargo market. This strategic move positions the airline to effectively compete in the ever-evolving air cargo industry.

Expansion Plans and Route Expansion

To cater to the growing demand, airlines are expanding their fleets and adding new routes to their networks. This expansion requires a substantial increase in personnel, including pilots, cabin crew members, ground staff, and maintenance technicians. Airlines are actively seeking qualified individuals to fill these positions and ensure smooth operations as they extend their reach to new destinations.

Retirements and Attrition

Another factor contributing to the hiring spree is the retirement of experienced aviation professionals and natural attrition within the industry. As senior pilots, crew members, and other staff members reach retirement age, airlines need to replace them with new talent. Additionally, attrition occurs due to employees pursuing other career opportunities or personal reasons, creating further vacancies that need to be filled.

Technological Advancements and New Positions

Advancements in technology have revolutionized the aviation industry and created new job opportunities. Airlines are investing in automation, artificial intelligence, and data analytics to enhance their operations and improve efficiency. This has led to the emergence of positions such as data scientists, cybersecurity experts, and drone operators, which require specialized skills and expertise.

Training and Development Programs

To meet the increasing demand for skilled aviation professionals, airlines are investing in comprehensive training and development programs. These initiatives aim to attract individuals from diverse backgrounds and equip them with the necessary skills to thrive in the industry. Airlines are partnering with educational institutions and implementing robust training curricula to nurture talent and ensure a competent workforce for the future.

The Impact on Aviation Professionals

The hiring spree in the aviation industry has had a positive impact on aviation professionals. With an abundance of job opportunities available, individuals have a wider selection of airlines and career paths to choose from. This increased competition among airlines also leads to improved employment packages, better benefits, and enhanced career progression opportunities for professionals in the field.

Opportunities for Job Seekers

For individuals interested in pursuing a career in aviation, the current hiring spree presents a multitude of opportunities. Airlines are actively recruiting pilots, cabin crew members, ground staff, engineers, and various other positions. Job seekers can explore different airlines, evaluate their unique offerings, and find a role that aligns with their skills and aspirations. This surge in hiring provides fertile ground for individuals to kick-start their aviation careers.

Future Plans and Expansion Strategy

While the recruitment call signifies Bismillah Airlines' commitment to A321F operations, the airline has not disclosed detailed information about its expansion plans. The number of aircraft involved, the nature of the operation, the timeline, and the route structure are yet to be revealed. However, this strategic move indicates the airline's ambition to expand its cargo operations, capitalize on emerging market opportunities, and serve a wider customer base. Bismillah Airlines, backed by the Mollah Group of Industries, enjoys a solid financial foundation and a diverse range of activities. This positions the airline favorably for future growth and enhances its potential to establish itself as a leading cargo carrier in the region. With the adoption of the A321 freighters and the recruitment of skilled professionals, Bismillah Airlines is poised to offer efficient and reliable cargo services, meeting the demands of its customers while ensuring sustainable growth.

Conclusion

Bismillah Airlines' decision to embrace Airbus A321 freighters demonstrates its commitment to growth and adaptability in a rapidly changing industry. By capitalizing on the A321F's capabilities, the airline aims to elevate its cargo operations to new heights, providing efficient logistics solutions to a global customer base. As Bismillah Airlines moves forward with its expansion plans, it remains poised to navigate the evolving dynamics of the air cargo market and solidify its position as a leading cargo carrier. The aviation industry is witnessing a hiring spree as airlines around the world recover from the impact of the pandemic and experience a surge in travel demand. Factors such as the recovery of the travel industry, expansion plans, retirements, and so on. Aviation professionals and job seekers alike stand to benefit from this surge, with improved employment packages and a wider range of career opportunities available.

With Inputs from FlightGlobal

United Airlines, one of the leading global airlines, continues to enhance the travel experience for its passengers. In line with its commitment to providing top-notch amenities, the airline recently unveiled a remarkable addition to its services at Newark Liberty International Airport.

The Unveiling of the United Club near Gate C123

United Airlines, renowned for its dedication to providing world-class service, unveiled an impressive United Club near gate C123 at Newark Liberty International Airport last May. This remarkable lounge spans an expansive 30,000 square feet, offering a haven of comfort and luxury for United Airlines' premium passengers. With its strategic location, it provides easy access and convenience for travelers passing through this bustling airport hub.

United Airlines' Commitment to Lounge Expansion

As a testament to its commitment to passenger satisfaction, United Airlines has been consistently expanding and remodeling its lounge locations worldwide. The airline recognizes the importance of offering exclusive spaces where travelers can relax, recharge, and enjoy elevated amenities. By investing in lounge expansion, United Airlines aims to provide an unrivaled travel experience that goes beyond expectations.

Introducing the Newest Lounge at Gate A27

Continuing its tradition of innovation and luxury, United Airlines has opened its latest lounge expansion across gate A27 in Terminal A of Newark Liberty International Airport. Covering an area of 15,000 square feet, this modern and stylish space is designed to cater to the needs of discerning passengers. Its strategic location in Terminal A ensures easy accessibility for travelers departing from or transiting through this terminal. The new United Club outpost is the first to open in Terminal A at Newark Airport, and it has been in the works for several years until it was formally inaugurated late last month. Down the way, the terminal will include an American Airlines Admirals Club, a Delta Air Lines Sky Club, and an American Express Centurion Lounge.

The Features and Amenities of the Terminal A Expansion

The newly inaugurated United Club at gate A27 boasts a host of features and amenities that embody the airline's commitment to excellence. The lounge offers comfortable seating areas, designed to provide privacy and relaxation, along with ample charging stations for electronic devices. Business travelers will appreciate the well-equipped workstations that facilitate productivity while on the go. And, in comparison to United Airlines' numerous lounges across the globe as well as Newark Airport, the new United Club outpost is slightly more distinct, with a New York/New Jersey-inspired décor and open-air layout. The club features locally-sourced furniture and décor that reflect the targeted neighborhood, bridging an industrial loft aesthetic alongside contemporary design.

The venue additionally showcases handcrafted artwork by local artists, including a feature mural by Newark-based artist Antoinette Ellis-Williams, who is noted for her technique of layering using mixed media and abstract collating. Additional local artworks are exhibited around the club, including paintings, photography, and prints from an array of New York and Bronx-based artists. Apart from having an innovative architecture, the new United Club outpost features over 300 seats, including numerous recliners, couches, and chairs. Individual workstations are also provided throughout the lounge, making it ideal for lounging, working, dining, and socializing. Passengers can additionally take advantage of complimentary beverages and all-day dining at the entire buffet.

Passengers can also savor a wide selection of complimentary food and beverages, including delectable snacks, refreshing beverages, and gourmet options. The lounge also features a well-stocked bar, offering a range of premium alcoholic and non-alcoholic beverages to suit every taste. Passengers can additionally indulge in professionally created cocktails and local touches like saltwater taffy and the official New Jersey state sandwich: ham, egg, and cheese, at the premium bar. The club offers the standard self-scan entrance gates and high-speed WiFi access, as well as a wellness space for nursing passengers or travellers seeking to meditate or pray. Additionally, travelers can enjoy access to a variety of newspapers, magazines, and digital content to keep themselves informed and entertained during their stay.

Elevating the Passenger Experience: United Airlines' Vision

United Airlines' relentless pursuit of passenger satisfaction is evident through its continuous efforts to enhance the travel experience. By introducing spacious and opulent lounges, such as the United Club near gate C123 and the new expansion at gate A27, the airline ensures that its passengers have access to unparalleled comfort and luxury throughout their journey.

The Benefits of United Club Membership

United Airlines offers exclusive membership to its United Club, providing discerning travelers with an array of benefits. Club members enjoy access to luxurious lounges worldwide, including the newly expanded lounge at Newark Liberty International Airport. This membership offers an oasis of tranquility, where members can unwind, recharge, and enjoy premium amenities tailored to their needs.

How to Gain Access to United Club Lounges

Passengers can access United Club lounges in various ways. United Club membership provides unlimited access to all United Club locations, irrespective of the class of service. Alternatively, travelers can purchase a day pass, granting them access to United Club lounges for a single day. Certain frequent flyer programs and premium ticket holders may also be eligible for complimentary access, based on their status or ticket type.

United Airlines' Focus on Customer Satisfaction

United Airlines' commitment to customer satisfaction extends beyond its lounge expansions. The airline continuously strives to improve every aspect of the passenger experience, from seamless check-in procedures to in-flight comfort and amenities. By offering top-notch services and facilities, United Airlines aims to exceed customer expectations and foster long-lasting loyalty.

Conclusion

United Airlines has once again demonstrated its dedication to passenger comfort and satisfaction with the unveiling of the new United Club expansion at gate A27 in Terminal A of Newark Liberty International Airport. This luxurious 15,000-square-foot lounge is designed to provide travelers with an exquisite and relaxing environment, further enhancing their overall travel experience. United Airlines' relentless pursuit of excellence ensures that passengers receive the utmost care and comfort throughout their journey.

With Inputs from The News & Observer, Travel Pulse

With the end of the school year in the UK just around the corner, many families eagerly anticipate their holiday plans. However, news of EasyJet's recent announcement regarding the cancellation of 1,700 flights at London Gatwick Airport has sent shockwaves through the travel community.

EasyJet's Announcement of Flight Cancellations

EasyJet, one of the leading low-cost airlines in Europe, recently made headlines by announcing the cancellation of 1,700 flights at London Gatwick Airport. These cancellations are set to occur during the airline's busiest months: July, August, and September. Such a substantial number of flight cancellations raises concerns and questions among travelers who have made reservations and meticulously planned their vacations. EasyJet cancelled more than 40 flights to and from Gatwick on Saturday alone, affecting more than 6,000 passengers. Several additional easyJet departures were cancelled on Sunday, including flights to the key Spanish holiday airports of Malaga, Barcelona, and Alicante.

Reasons Behind the Cancellations

The frequent cancellations by EasyJet can be attributed to two main factors: constrained airspace over Europe and ongoing air traffic control difficulties and disputes. These challenges have resulted in significant disruptions to the airline's operations, affecting the travel plans of countless individuals and families.

Impact On Holiday Plans

The cancellation of 1,700 flights during peak holiday months has left many families in a state of uncertainty and distress. Those who have been looking forward to their vacations now face the daunting task of rearranging their travel arrangements, finding alternative flights, and potentially encountering additional costs. The disruptions caused by these cancellations have caused frustration and disappointment among holidaymakers, who were hoping for a smooth and enjoyable travel experience.

Constrained Airspace Over Europe

One of the primary reasons for the frequent cancellations is the issue of constrained airspace over Europe. The airspace capacity is often stretched to its limits, especially during peak travel seasons. This limited capacity results in congestion, delays, and sometimes even flight cancellations. EasyJet, operating within this constrained airspace, is particularly vulnerable to such disruptions, affecting its ability to operate as scheduled.

Ongoing Air Traffic Control Difficulties and Disputes

Another factor contributing to the flight cancellations is the ongoing air traffic control difficulties and disputes. Air traffic control is responsible for managing and directing the flow of aircraft in the sky, ensuring safe and efficient travel. However, disagreements, staffing issues, and technological limitations can cause delays and cancellations. EasyJet has faced challenges with air traffic control in the past, and these issues persist, leading to further disruptions to their flight operations.

Measures Taken by EasyJet to Mitigate Disruptions

To minimize the impact of the flight cancellations on its customers, EasyJet has implemented various measures. The airline has been actively communicating with affected passengers, providing alternative travel options, including rebooking on other flights, or offering refunds. Additionally, EasyJet has increased its customer service resources to handle the influx of inquiries and ensure that affected travelers receive the necessary assistance and support.

Alternatives For Affected Travelers

For those affected by the flight cancellations, exploring alternative options becomes crucial. Travelers can consider contacting EasyJet's customer service for rebooking or refund options. Additionally, they can explore alternative airlines or modes of transportation, such as trains or ferries, to reach their intended destinations. It is essential to remain proactive and flexible during such situations to minimize disruptions to travel plans.

Conclusion

The cancellation of 1,700 flights at London Gatwick Airport by EasyJet has dealt a significant blow to the holiday plans of numerous families. The constrained airspace over Europe and ongoing air traffic control difficulties and disputes have led to frequent disruptions in the airline's operations. Despite the challenges, EasyJet has taken steps to assist affected travelers and provide alternative solutions. As travelers navigate these unexpected hurdles, remaining patient, proactive, and open to alternative options will help mitigate the impact of these flight cancellations.

With Inputs from The Guardian, Independent

Airbus has long been a key player in the aviation industry, known for its commitment to innovation and cutting-edge aircraft design. Over the years, Airbus has constantly adapted to the evolving needs of the market, developing aircraft that offer enhanced performance, efficiency, and passenger comfort.

The Rebirth of a Hangar: From A380 to A321neo

The inauguration of the new assembly line for the A321neo passenger jet in Toulouse, southwestern France, on July 10th marks a significant milestone for Airbus. The hangar, once used for constructing the A380 superjumbo, has now been repurposed to meet the growing demand for smaller and more economically viable aircraft. This transformation reflects Airbus's strategic decision to shift its focus towards the A321neo, a highly versatile and fuel-efficient aircraft. Finance Minister Bruno Le Maire inspected the partially automated line inside the Jean-Luc Lagardere facility, where Airbus claims 700 jobs will be created by 2026, or around half of the full-time amount when the world's largest jetliner was constructed there.

It is the A320 family's eighth assembly line, with previously announced expansion plans in the United States and China bringing the global total to ten. The first plane is scheduled to be finished in late 2023 and delivered the following year. Its launch comes as competition between Airbus and arch-rival Boeing switches to production, with both corporations devising plans to satisfy bulging order books in the most efficient way possible following months of chronic disruption.

The A321neo: An Overview

The A321neo is a member of the Airbus A320neo family, which includes the A319neo and A320neo models. This next-generation aircraft incorporates state-of-the-art technology, providing airlines with improved performance, increased range, and reduced operating costs. The A321neo is particularly well-suited for medium-haul flights, offering an optimal balance between capacity and fuel efficiency.

Unmatched Efficiency and Performance

One of the key advantages of the A321neo is its exceptional fuel efficiency. The aircraft is equipped with advanced engines that consume significantly less fuel compared to previous generations. This efficiency translates into lower operating costs for airlines and reduced carbon emissions, making the A321neo an environmentally friendly choice.

Advanced Technology and Innovative Features

The A321neo integrates cutting-edge technology to enhance its overall performance. It features the latest avionics systems, including digital fly-by-wire controls and advanced autopilot capabilities, ensuring precise navigation and a smooth flying experience. The aircraft's aerodynamic design further contributes to its efficiency, reducing drag and optimizing fuel consumption.

Interior Comfort and Passenger Experience

Passenger comfort is a top priority for Airbus, and the A321neo delivers on this front. The cabin is designed to provide a spacious and inviting environment, with larger overhead storage compartments and wider seats. Additionally, the aircraft boasts reduced noise levels, improved air quality, and customizable cabin configurations, allowing airlines to tailor the experience to their passengers' needs.

The Environmental Benefits of the A321neo

Airbus has always been at the forefront of sustainable aviation, and the A321neo exemplifies its commitment to environmental responsibility. The aircraft's fuel efficiency directly contributes to a significant reduction in carbon dioxide (CO2) emissions, making it a greener choice for airlines. Furthermore, the A321neo is equipped to operate with sustainable aviation fuels, further reducing its environmental impact.

The Impact on the Aviation Industry

The introduction of the A321neo assembly line signals a shift in the aviation industry. With airlines increasingly seeking cost-effective and eco-friendly solutions, the A321neo has quickly gained popularity. Its versatility and efficiency make it an attractive option for both legacy carriers and low-cost airlines, opening up new possibilities for route expansion and increased profitability.

The Road Ahead: Future Prospects for Airbus

As Airbus continues to invest in the development of the A321neo and other innovative aircraft, the company is well-positioned for future growth. The demand for medium-haul jets is projected to increase in the coming years, driven by factors such as population growth, urbanization, and the expansion of air travel in emerging markets. Airbus aims to capitalize on these trends by providing airlines with state-of-the-art aircraft that meet their evolving needs.

Conclusion

The inauguration of the new A321neo assembly line represents a significant achievement for Airbus. By repurposing the hangar that once housed the A380 superjumbo, Airbus has demonstrated its adaptability and foresight. The A321neo, with its unparalleled efficiency, advanced technology, and superior passenger experience, is set to make a lasting impact on the aviation industry. With a commitment to sustainability and a focus on meeting market demands, Airbus is poised to shape the future of air travel.

With Inputs from Reuters