In May last year, Go First, formerly known as GoAir, faced a sudden suspension of flights and opted for voluntary insolvency resolution, a decision aimed at safeguarding the airline’s interests. A year later, the fate of the once-airborne carrier remains precarious as it navigates through a prolonged resolution process with no planes in sight.
Revival hopes amidst liquidation threat
As June approaches, there are subdued hopes for a revival as the extended deadline for the resolution process draws near. However, experts fear that Go First might be pushed into liquidation, adding to the uncertainties surrounding the airline’s future.
Former chief Kaushik Khona expressed deep concern over the prolonged suspension of operations, emphasizing the loss for the airline and its loyal customers.
“It is extremely painful to see that even after one year, the airline has not been able to revive the operations,” the budget carrier’s former chief Kaushik Khona said, reported PTI.
Despite initial optimism among staff for a swift resumption of operations, the reality of grounded planes and unresolved legal battles dashed those hopes.
Go First’s legal battle deepens
The airline’s fleet of 54 planes has been deregistered following prolonged legal disputes, with lessors poised to reclaim their aircraft. The ramifications of Go First’s insolvency process extend beyond its operational halt, raising questions about lessors’ rights under the Cape Town Convention.
While the path to revival seems challenging, industry insiders see potential value in Go First’s assets. The airline’s substantial pre-delivery payment to Airbus and pending lawsuit against P&W indicate lingering value despite its current predicament.
Potential bidders for Go First
The insolvency resolution process, extended until June 3, has attracted interest from potential bidders, including Busy Bee Airways and Sky One. Amidst regulatory directives and legal complexities, prospective bidders are vying for a chance to revive the beleaguered airline.
With Go First’s fate hanging in the balance, the aviation industry faces yet another case of prolonged resolution and potential value erosion. The need for expeditious resolution mechanisms to mitigate value destruction is underscored, highlighting the challenges posed by protracted insolvency processes.
Aviation industry challenges
The protracted resolution process of Go First echoes the unresolved fate of Jet Airways, underscoring broader industry challenges. As stakeholders await regulatory decisions and potential bids, the saga of Go First serves as a cautionary tale amidst an ever-evolving aviation landscape.
As Go First navigates through a turbulent period marked by legal battles, regulatory directives, and prospective bids, the aviation industry watches closely, grappling with the implications of prolonged insolvency processes. Amidst hopes for revival and fears of liquidation, the saga of Go First serves as a poignant reminder of the fragility of airline operations in an increasingly complex and uncertain landscape.