Airlines going bankrupt won’t be able to hold onto leased aircraft: Govt

Indian carriers going bankrupt in the future will no longer be able to hold on to their leased aircraft and engines under the asset protection (moratorium) provided for a limited time by the Insolvency and Bankruptcy Code (IBC), like GoAir. A gazette notification by the Union corporate affairs ministry on Tuesday (Oct 3) comes as a huge relief to Indian airlines as the GoAir fiasco had made lenders wary of giving aircraft and engines to them, especially the financially weak ones.