Comprehension
Why aircraft lessors' woes may lead to costlier flights New Delhi: Record high airfares hurting passengers could rise even further following yet another instance of foreign lessors facing roadblocks in repossessing their aircraft from a troubled Indian carrier. Leasing aircraft could cost 20-25% more for startups and financially weak Indian carriers after the Go First case where lessors are now barred from taking their planes back for at least six months unless the NCLAT gives them some relief people in the know said. Only Indigo and Tata group carriers led by air India could be spared this increased cost as they are good credit for lessors lease rentals account for 10-12% of an airline's operating cost. A 20-25% increase in lease rentals will mean overall cost rising by 2-3% which will have to reflect in ticket prices. Except AI and Indigo it will be very challenging for other airlines, including startups. NCLT has directed go first erstwhile board to deposit Rs.5 crore with the resolution professional while the 55 aircraft currently with the airline are worth over $2.5 billion," said an industry veteran. Now at the first sign of trouble in an Indian carrier lessors will line up to responses planes to avoid such a scenario where an airline uses the IBC route to escape de-registration of aircraft said another official. In the past also, lessors faced trouble in getting planes back from airlines such as jet and kingfisher that went bust, with aircraft stuck with the later being sold as scrap after rotting away at Indian airports. Meanwhile Go's new management will have to satisfy DGCA that it has the resources to safely operate flights in term of money manpower and machines.
US engine co PW hits back at Go First, blames 'financial mismanagement'. Go First may have blamed Pratt & Whitney (PW) for its troubles but the US aerospace major has hit back at the airline. "Go First is seeking to jump the line for engines over other customers worldwide. Airline customers, who have been in good financial standing and compliant with contracts, should not be made to suffer due to the financial mismanagement and contractual violations of one particular airline," said sources. Over 50 airbus A320neos of Go and Indigo are grounded due to PW engines. Asked about these planes, a PW spokesperson said "Expect supply chain to stabilize throughout 2023...."
Question: 1

Why airfares already too high could rise even further?

Updated On: Mar 12, 2025
  • Due to raising fuel cost
  • Due to raising fuel cost maintenance cost
  • Foreign lessors facing problems to buy new aircrafts
  • A troubled aircraft Indian carrier possesses aircrafts from foreign lessers and has become the root cause for airfare hike.
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The Correct Option is D

Solution and Explanation

The correct answer is option (D) :A troubled aircraft Indian carrier possesses aircrafts from foreign lessers and has become the root cause for airfare hike.
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Question: 2

Given below are two statements:
Statement I : The full form of NCLAT is National company Low Aviatron Tribural. 
Statement II : Full form of DGCA is Director General of Carrier Aviation. 
In the light of the above statements, choose the correct answer from the options given below:

Updated On: Mar 12, 2025
  • Both Statement I and Statement II are true
  • Both Statement I and Statement II are false
  • Statement I is true but Statement II is false
  • Statement I is false but Statement II is true
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The Correct Option is B

Solution and Explanation

The correct answer is option (B):Both Statement I and Statement II are false
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Question: 3

After which case leasing aircraft could cost 20-25% more?

Updated On: Mar 12, 2025
  • NCLAT case
  • DGCA case
  • Go first case
  • Al indigo case
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The Correct Option is C

Solution and Explanation

The correct answer is option (C):Go first case
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Question: 4

The overall cost raising due to the lease rented issue will be

Updated On: Mar 12, 2025
  • 20-25%
  • 10-12%
  • 2-3%
  • 10-25%
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The Correct Option is C

Solution and Explanation

The correct answer is option (C):2-3%
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Question: 5

Go First is seeking to jump the line for engines over other customers worldwide. The underlined phrase means:

Updated On: Mar 12, 2025
  • To skip the que.
  • To skip the que and go to the last place.
  • To skip the que while waiting for one's turn.
  • To skip the que and go ahead without waiting for one's turn.
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The Correct Option is D

Solution and Explanation

The correct answer is option (D): To skip the que and go ahead without waiting for one's turn.
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