Go First has gone from an airline powering the Indian aviation sector taking off towards a post-pandemic recovery, to a carrier on the brink of a collapse. Citing a liquidity crisis after Pratt & Whitney allegedly sent defective engines and stopped the supply of new ones, the airline claimed that it is bankrupt and approached the National Company Law Tribunal.
As Go First awaits NCLT's order on its voluntary insolvency, lessors of its fleet want as many as 20 aircraft to be deregistered.
Trouble keeps piling up
A day after Go First told NCLT that it can't continue to pay lease and expenses of grounded planes, lessors requested the Director General of Civil Aviation to deregister aircraft.
As planes are expected to be deregistered within five days after the request, Go First may lose a major chunk of its fleet.
With 25 aircraft representing 50 per cent of Go First's fleet inoperative due to the engine shortage, loss of 20 more will cast a doubt on its ability to restart flights after May 15.
The road ahead for Go First
As developments point in the direction of an end to Go First's journey, it still isn't clear whether the carrier will take legal recourse.
Although the airline insisted that voluntary insolvency was a way to save the firm rather than shutting down without paying dues, lessors opposed the move in the NCLT hearing.
As Go First owes more than Rs 11,000 crore to lenders, vendors, and lessors, its bank guarantees are also being encashed to recover the money.
