Dubai Aerospace flags corrosion in plane leased to bankrupt Go First

Dubai Aerospace Enterprise (DAE) Capital has told an Indian court it detected corrosion of some parts and "a greenish deposit" on a plane leased to bankrupt airline Go First, after another lessor complained about "robbed" parts. Foreign lessors have been engaged in a legal tussle to repossess their aircraft after the Go First was granted bankruptcy protection in May, imposing an asset freeze that blocked the recovery of 50 plus grounded Airbus planes.

The lessors currently are only allowed an occasional inspection of the grounded Go First planes, which DAE and others claim are not being properly maintained. In a September 6 filing seeking to ensure the airline carries out maintenance, DAE submitted pictures to the Delhi High Court showing corroding plane parts and said the aircraft will "continue to deteriorate, resulting in a sharp decline in the value of the asset."

Go First did not respond to a request for comment. Earlier this month, lessor ACG Aircraft Leasing, asked a court to direct the airline to replace "robbed" parts from its leased jets and allow it to appoint around the clock security to guard grounded aircraft, after it found many parts were missing. DAE court documents show it was worried about a lack of covers on cabin and cockpit seats "which would eventually lead to fungus formation", according to an internal e-mail contained in the filing.

The filing also stated DAE found a "greenish deposit" on the plane's body.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.