Go First, launched as Go Air almost two decades back in 2005, was one of the most well known affordable domestic carriers in India, and was recovering from the pandemic like its peers. But flyers who trusted the airline were shocked when it abruptly suspended operations for two days and soon filed for bankruptcy, leaving both passengers and investors hanging.
Apart from refunds to flyers and salaries to employees, Go First reportedly owes more than Rs 6,500 crore to multiple banks.
Axis Bank allays fears
Among those named as its creditors, Axis Bank has already clarified that it has no exposure to the airline grounded over a shortage of engines.
This leaves Bank of Baroda and IDBI among others that have lent cash to Go First, which has been accused of missing financial obligations by Pratt & Whitney.
Although Go First is silent on borrowings, it has admitted that promoters have invested a total of Rs 6,500 crore over the years.
Including the money to be repaid to banks, Go First has to pay Rs 11,463 crore to creditors and vendors.
Reassurances on repeat
As of now, Go First's CEO Kaushik Khona has reached out to employees to reassure them about the airlines best efforts to find a way through the crisis.
Khona added that he can provide more clarity once the airline gets interim relief under Section 10 of the Indian Bankruptcy Code.