According to reports, the Tata Group and IndiGo are negotiating to buy Airbus SE aircraft from Go Airlines India Ltd. This happened after the carrier requested bankruptcy protection and was told to stop selling tickets.
According to reports Tata Group and IndiGo are currently involved in separate negotiations with Go First’s lessors. The two businesses are also in conversation about landing and parking slot arrangements with the airport operators in Mumbai and New Delhi. The files lodged with India’s aviation regulator reveal that the lessors of Go First are attempting to reclaim 36 aircraft.
Numerous other parties have reportedly indicated an interest in obtaining the airport slots. According to sources, the recently founded airline Akasa Air is one of the interested companies named.
(NCLT) accepts the request from Go First
The National Company Law Tribunal (NCLT) accepted Go First’s voluntary request to start the insolvency resolution process in its decision on Wednesday. Abhliash Lal was chosen as the interim resolution professional (IRP) to oversee the indebted firm by a two-member bench made up of President Justice Ramalingam Sudhakar and L N Gupta.
The company is now protected by a moratorium, and the suspended board of directors has been ordered to help the IRP administer it while insolvency procedures are ongoing. Additionally, the NCLT required that no employees be given time off and that the company stay open for business.
The enormous demand for Go First’s assets may make it difficult for the airline to restructure its debt and begin operations again.
Similar to the steps taken against Vijay Mallya’s Kingfisher Airlines approximately ten years ago, the Indian aviation authority ordered Go First to stop selling tickets on Monday, May 8.
Unfortunately, Kingfisher Airlines didn’t start up again soon after. The decision on whether the airline can keep its operating licence is anticipated to be made public within the next two weeks, leaving Go First’s future in limbo.
Among the key lessors for Go First are Sky High XCV Leasing Ltd, ACG Aircraft Leasing Ireland Ltd, and SMBC Aviation Capital Ltd.
Business tycoon Nusli Wadia founded the organisation Go First in 2005. According to the airline, the Pratt & Whitney engines put into use on its A320neo aircraft decayed more quickly than was expected, leading to premature failure.
Between 2016 and February 2023, the airline claimed, it had to replace more than 500 Pratt GTF engines. As a result, the airline suffered losses totalling Rs 10,800 crore ($1.3 billion) and had to pull several aircraft out of service.
American aircraft manufacturer Pratt & Whitney
Pratt & Whitney, a division of Raytheon Technologies Corp., has previously stated that the problem Go Air is experiencing is being resolved through the judicial system. Additionally, it said that keeping all of its clients’ delivery schedules on time was its top focus.
Due to a lack of new commercial jetliners as a result of supply chain problems and a quicker-than-anticipated rebound in travel demand following the epidemic, businesses like Tata and IndiGo now have the chance to grow their fleets.
The erstwhile state-run Air India is acquired by Tata, which is also merging its other brands, such as the regional Singapore Airlines Ltd. and Capital A Bhd.’s AirAsia operations.
The low-cost airline IndiGo, which is operated by InterGlobe Aviation Ltd, carried 7.3 million passengers in March, accounting for about 60% of the domestic market in India.
The Go First Airline company
Go First was established as GoAir. It had its base in Mumbai, Maharashtra. It is owned by the powerful Wadia Group, an Indian company. It was India’s fifth-largest airline by passenger volume with an 8.4% market share in October 2017. It had an all-economy fleet of Airbus A320s when it first started operating on November 4th, 2005.
In March 2020, the airline operated around 330 daily flights from its hubs in Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Chandigarh, and Kannur to 36 destinations, including 27 domestic and nine overseas destinations. The airline filed a DRHP with SEBI, the Indian stock market regulator, to undertake an IPO to raise Rs 36 billion from the main market.
Proofread, Edited & Published By Naveenika Chauhan
