India’s Go First gains bankruptcy protection
The existing airport is capable of handling only small aircraft while the new airport is being designed to cater to the needs of large Airbus A-380 aircraft. Photo: File
Go Airlines (India) Ltd was granted bankruptcy protection on Wednesday, bolstering the country’s fourth-largest carrier chances of getting back on its feet, but lessors are expected to mount legal challenges to repossess planes.
The low-cost carrier, recently rebranded as Go First, was plunged into financial crisis this year, sparked by what it called “faulty” Pratt & Whitney engines that grounded about half its 54 Airbus A320neos. The US engine maker, part of Raytheon Technologies, in a statement said Go First’s allegations were “without merit”.
In granting bankruptcy protection, the National Company Law Tribunal in New Delhi ordered a moratorium on Go First’s assets and leases. It also appointed Abhilash Lal of Alvarez and Marsal as the interim resolution professional to take over management with immediate effect.
The resolution professional “shall ensure that retrenchment of employees is not resorted to as a matter of course,” the tribunal’s 41-page order said. Go First has staff of around 7,000.
Published in The Express Tribune, May 11th, 2023.
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