Go First granted bankruptcy protection

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Go First, an embattled airline, has been granted bankruptcy protection by the National Company of Law Tribunal (NCLT). The NCLT admitted the airline’s voluntary plea to initiate an insolvency resolution process and ordered a moratorium on its assets and leases.

As a result, an interim resolution professional named Abhilash Lal has been appointed to take over the management of the airline.Go First has been facing a financial crisis and attributed its situation to engine manufacturer Pratt & Whitney (P&W). The airline claimed that the grounding of 25 aircraft was due to the increasing number of failing engines supplied by Pratt & Whitney’s International Aero Engines. In response to the insolvency plea, the airline’s lessors had moved to repossess the planes, prompting Go First to urgently request the NCLT for an order on the insolvency proceedings.Since May 3, Go First has not operated any flights, and it has announced that its flights will remain canceled until May 19 for operational reasons.

The Directorate General of Civil Aviation (DGCA) has directed the airline to halt ticket sales immediately and has issued a show cause notice regarding its failure to ensure safe and reliable operations.The appointment of an interim resolution professional marks a significant step in Go First’s insolvency process. The airline will now undergo restructuring under the supervision of the professional, with the aim of resolving its financial issues and returning to operational stability.

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