TBM Staff - Mumbai According to latest reports, Go First is hoping to resume operations within the next two weeks. The New Delhi bench of the National Company Law Tribunal (NCLT) has granted bankruptcy protection to the airline, allowing it to retain its aircraft and airport parking slots and preventing lessors and vendors from recovering pending dues.
The airline is now working with an interim resolution professional, Abhilash Lal of Alvarez & Marsal, who was appointed by the NCLT on May 10. The resolution professional is expected to negotiate a settlement between the lessors and the airline to facilitate Go First’s restart. The plan is for the resolution professional to meet with the airline’s top management and employees in the coming days and then approach the Ministry of Civil Aviation and Directorate General of Civil Aviation to seek permission to resume operations.
Go First aims to recommence operations with around 20 aircraft and operate approximately 1,200 flights per week. The airline plans to gradually scale up its operations as part of the insolvency resolution plan discussions.
Go First CEO Kaushik Khona expressed relief over the NCLT’s decision, stating that it prevents a viable airline from becoming unviable and emphasizing that the purpose of the insolvency proceedings is to facilitate revival. Khona mentioned that the next steps will involve discussions with the resolution professional regarding refunds and the resumption of flights.
Prior to the NCLT ruling, Go First had filed an emergency petition in the Delaware Federal Court on April 28, seeking a legal order to compel Pratt & Whitney (P&W) to comply with two arbitral awards issued by the Singapore International Arbitration Centre (SIAC). The SIAC had ordered P&W to provide Go First with a minimum of 10 serviceable engines by April 27, with the remainder to be supplied by the end of the year. As P&W failed to comply, the SIAC issued a second arbitral award on April 15, reinforcing its order for P&W to fulfill the engine supply.
On May 2, Go First announced that it had filed an application for voluntary insolvency resolution proceedings with the NCLT, Delhi, citing severe financial constraints.
Please note that the information provided is based on the available news reports up until my last knowledge update in September 2021. It’s advisable to refer to the latest news sources for the most up-to-date information on Go First’s situation.
