India: Court Orders Liquidation of Go First Airways
The fate of Go First Airways, a low-cost airline in India, has taken a definitive turn toward liquidation following a recent order by an Indian court, CNBC-TV18 reported Monday, marks the end of a long financial process that began with the company’s May 2023 bankruptcy filing.
Financial Crisis in Numbers
The financial situation of Go First Airways is dire: the airline owes a total debt of 65.21 billion rupees (approximately $781.14 million USD). Its major creditors include the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank.
Bankruptcy Process and Failed Bids
After declaring bankruptcy, the airline received two financial bids as part of the restructuring process. However, creditors rejected both options. In August, these same creditors decided to proceed with the liquidation of the company’s assets, considering none of the bids viable for its rescue.
→ Air India announces order for another 100 Airbus aircraft
Conflicts with Foreign Lessors
A key aspect of Go First Airways’ collapse has been its dispute with foreign aircraft lessors. These lessors sought to repossess leased planes but faced a legal roadblock due to a moratorium imposed by Indian courts. Eventually, in April 2023, a local court allowed the lessors to regain control of their aircraft.
The case of Go First Airways highlights the challenges of operating in the aviation industry, particularly in the low-cost sector. Airlines face not only fierce competition and tight profit margins but also economic volatility and international legal disputes that can exacerbate a financial crisis.
With this outcome, Go First joins the list of airlines that have failed to overcome financial obstacles in such a demanding market. Its liquidation serves as a reminder of the need for robust financial management and structural solutions to ensure long-term sustainability.
Related Topics
Copa Airlines Resumes Flights to Caracas on May 27
Venezolana de Aviación Resumes Flights Between Caracas and Panama City This Friday
Venezuela and Panama to Resume Commercial Flights
LATAM Announces New Route Between Porto Alegre and Buenos Aires
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.