Now Go First will not fly, will pay off debt by selling assets; registration of 54 aircraft canceled
Go First Airlines: The airline company Go First, which is in financial trouble, will also not be able to fly now. The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of Go First, which had been providing air travel to crores of people for 17 years.
After Jet Airways, the airline company Go First, which is in financial trouble, will also not be able to fly now. On Monday, the National Company Law Tribunal (NCLT) ordered the liquidation of Go First, which had been providing air travel to crores of people for 17 years. This means that the company will have to repay its debt by selling its assets. Due to financial problems, the airline voluntarily applied for an insolvency resolution process in May 2023. The operations of Go First have been closed since May 3, 2023, i.e. for about two years.
NCLT said in a 15-page order that the company is Go Airlines (India) Ltd. NCLT is ordering the liquidation of Go First. Now the Committee of Creditors (CoC) has the right to decide on the liquidation of Go First at any time after its formation and before the confirmation of the resolution plan.
The NCLT said the proposal for liquidation of the corporate debtor was approved by the CoC with 100 percent voting. Therefore, there appears to be no merit in interfering with the commercial discretion of the CoC. Two months earlier, the Supreme Court had ordered the liquidation of Jet Airways on November 7, 2024, giving a big verdict in the bankruptcy proceedings case. Jet Airways last flew in April 2019.
The NCLT has appointed Dinkar Thiruvananthapuram Venkatasubramanian as the liquidator, who has been asked to continue investigating the financial affairs of the corporate debtor. According to the order, the liquidator will also have to follow the pending applications for their disposal during the liquidation process. The liquidator will have to submit an initial report to the NCLT within 75 days.
At least two bidders that had emerged in the course of the insolvency resolution process, SpiceJet chief Ajay Singh apart, were Busy Bee Airways and Sky One, Sharjah-based. Nishant Pitti is the co-founder of travel portal EaseMyTrip, a majority shareholder of Busy Bee Airways, but nothing came of this process. It was then that the NCLT ordered the liquidation of Go First.
During the insolvency process, the Directorate General of Civil Aviation (DGCA) also canceled the registration of 54 aircraft of Go First. The aviation company began domestic operations in 2005-06 with the first flight from Mumbai to Ahmedabad. International flights were initiated in 2018-19.
