Go First | Business Upturn

Sky One makes strategic bid for GoFirst

Vaibhav Agrawal — Mon, 19 Feb 2024 06:50:05 +0000

In the winds of change sweeping through the Indian aviation sector, Sky One, a prominent player headquartered in Sharjah, United Arab Emirates, has emerged as a contender in the race for strategic acquisitions. The industry, currently navigating its recovery from the pandemic-induced downturn, is witnessing a flurry of activity as companies position themselves to capitalize on India’s burgeoning aviation market. At the forefront of this movement is Sky One, known for its diverse portfolio of aviation services and a track record of strategic investments globally.

In a recent development, Sky One’s Chairman, Jaideep Mirchandani, confirmed the submission of a bid for GoFirst airline, signaling the company’s intent to solidify its foothold in India’s aviation landscape. Mirchandani expressed confidence in Sky One’s ability to navigate GoFirst’s financial challenges, leveraging the airline’s strategic assets such as coveted slots at domestic and international airports, international traffic rights, and a substantial user base. The bid, now subject to consideration by the Committee of Creditors overseeing GoFirst’s corporate insolvency resolution, marks a crucial step in the acquisition process.

Mirchandani underscored India’s potential for unprecedented growth in aviation as a key driver behind Sky One’s interest in the acquisition. Despite recent challenges, including supply chain disruptions for Pratt & Whitney engines, GoFirst’s strategic assets and market presence remain attractive to potential investors. The recent extension of GoFirst’s moratorium by the National Company Law Tribunal further underscores the opportunity for investors to participate in the airline’s revival.

Sky One’s bid for GoFirst aligns with its broader strategy of pursuing strategic acquisitions in the aviation sector. Previous endeavors, such as the bid for the government’s stake in Pawan Hans helicopter services company, exemplify Sky One’s commitment to expanding its presence in the industry. With a proven track record of making strategic investments globally, Sky One has positioned itself as a key player in aviation, offering services ranging from cargo charters to maintenance, repair, and overhaul (MRO) operations.

SpiceJet aims to forge alliance with Go First

Aditya Bhagchandani — Tue, 19 Dec 2023 07:21:02 +0000

Budget carrier SpiceJet announced today its intent to submit a proposal, following a comprehensive due diligence process, to the resolution professional of Go First. The objective is to collaboratively “create an airline” with the financially distressed carrier. The disclosure led to a noteworthy uptick of more than 7% in SpiceJet shares.

The development arises as Go First’s lenders contemplate the possibility of the airline’s liquidation, prompted by the absence of bids within the late November deadline.

While SpiceJet refrained from providing specific details about its offer on Tuesday, the airline revealed last week its plans to raise 22.50 billion rupees (approximately $271 million). This capital infusion, achieved through the sale of shares and warrants, is earmarked to support the carrier’s strategic growth initiatives.

Notably, SpiceJet’s bankruptcy filing outlines creditors, including Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, to whom the airline owes a total of 65.21 billion rupees ($784.60 million).

Go First faces uncertainty as NCLT grants 90 day extension in insolvency proceedings

Mahita Jain — Thu, 23 Nov 2023 08:10:12 +0000

The National Company Law Tribunal (NCLT) has granted a 90-day extension to the Corporate Insolvency Resolution Process (CIRP) of Go First, the grounded airline, beginning from November 6, 2023, and concluding on February 4, 2024. The decision instructs Go First to present an action plan within this timeframe, emphasizing the critical need for completing the resolution process. Failure to do so could lead to the initiation of the company’s liquidation by the tribunal.

The extension comes as the latest development in Go First’s insolvency proceedings, which began when the airline voluntarily filed for CIRP on May 2, 2023, under Section 10. Subsequently, on May 10, the NCLT admitted the insolvency plea and appointed a Resolution Professional (RP) to manage the company’s affairs.

During the proceedings, Go First’s RP informed the NCLT that there is one prospective bidder for the airline. However, as of the November 21 deadline, the bidder had not submitted the resolution plan. The RP asserted that the Committee of Creditors (CoC) is reassessing the next steps for the airline, and the CoC unanimously passed a resolution to seek the 90-day extension.

According to the Insolvency and Bankruptcy Code (IBC) of 2016, the resolution process must ideally be completed within 180 days. However, the NCLT can extend this period up to a maximum of 330 days. If a resolution is not reached within this extended timeframe, the NCLT is obligated to order the liquidation of the company. By February 4, 2024, Go First would have been under the resolution process for 270 days.The DGCA clarified that the rule exempting aircraft leases from the moratorium, which stops legal actions, should also apply to cases that were already in progress, not just new ones. This added a layer of complexity to Go First’s already challenging situation.

Go First revival at risk amid legal tussle with aircraft lessors

Vanshika Lodhi — Fri, 22 Sep 2023 08:34:15 +0000

The revival of the grounded Indian airline, Go First, could be jeopardized if a court sides with the demands of aircraft lessors. These lessors are seeking specific records after parts of the jet went missing or deteriorated, as per the legal filings from the carrier.

Foreign lessors have been embroiled in a legal dispute to reclaim their aircraft after Go First received bankruptcy protection in May. This protection, according to Indian law, placed a halt on the recovery of over 50 grounded Airbus planes.

Dubai Aerospace Enterprise (DAE) Capital and ACG Aircraft Leasing recently approached a Delhi court alleging that some parts had been “stolen” or the jets were corroding.

The lessors, who are only permitted occasional inspections of the grounded leased planes, have requested the court to compel Go First to provide maintenance and aircraft preservation records for their jets.

Go First has challenged the lessors’ demands in its initial court response, arguing that it would be a lengthy process that would impact its revival. The bankruptcy officer of Go First, Shailendra Ajmera, stated in legal filings that such requests would significantly affect Go Air’s daily operations and its ongoing concern status.

Obtaining such records would be a “time-consuming task and would significantly divert the resources” of Go First, “from resumption of operations … to provision/inspection of documents/records to the lessors,” he added.

These filings, submitted to the court on Sept. 8 and Sept. 17, are not public and are being reported by Reuters for the first time. Go First and the two lessors did not immediately respond to a request for comment.

The airline’s submissions are scheduled to be heard later on Friday. SMBC, the world’s second-largest aircraft lessor which also has some leased planes to Go, warned in May that India’s decision to prevent leasing firms from reclaiming the airline’s planes would shake up the market and trigger a confidence crisis.

Go First Case: another lessor moves NCLAT against order permitting airlines to use aircraft

Adesh Dixit — Tue, 29 Aug 2023 13:11:50 +0000

A challenge to the National Company Law Tribunal’s (NCLT) judgment allowing the grounded airline Go First to operate leased aircraft has been filed by Jackson Square Aviation Ireland Ltd with the National Company Law Appellate Tribunal (NCLAT).

After Engine Lease Finance BV, Jackson is the second lessor to contact the appellate tribunal. On August 18, the NCLAT modified the NCLT’s order from July 26 to allow the engine lessor to check the four engines that were leased to Go First.

The tribunal is anticipated to hear the lessor’s appeal, which was listed at the registrar’s court today, during the upcoming week. The Registrar’s Court is in charge of examining the legal compliance of the pleadings submitted by the plaintiffs.

On July 26, the NCLT declined to impose restrictions on Go First’s use of leased aircraft for its operations, citing the importance of such aircraft to Go First’s ability to continue as a going concern.

The DGCA has not deregistered the aircraft, which implies that Go First can utilize them to restart operations, according to the tribunal’s order. Therefore, as long as the aircraft/engines are registered, they may be utilized for operating or flying to maintain Go First as a going concern, as long as they do so in accordance with the security measures and safety standards established by the regulators.

The NCLT denied the lessors’ request to inspect their aircraft and engines and ruled that the Resolution Professional (RP) had previously been instructed to uphold that directive in a previous order from June 15 when it was issued. The tribunal has only provided relief to the lessors insofar as the RP has taken care of the aircraft and engines’ protection and upkeep.

NCLAT allows Go First lessor to inspect grounded aircrafts

Adesh Dixit — Fri, 18 Aug 2023 11:03:50 +0000

On Friday, the National Company Law Appellate Tribunal (NCLAT) granted Engine Lease Finance BV permission to examine the four parked engines it had leased to Go First Airline, a grounded airline.

In this ruling, the NCLT modified its order from July 26 that allowed Go First to utilize the leased aircraft and stated that it did not agree with the NCLT order’s provision prohibiting the engine lessor from examining the engines.

The NCLAT directed NCLT to resolve the situation as soon as possible. The resolution professional (RP) was also ordered by the court to give an inspection date within 10 days.

Anandh Venkatramani, the attorney for the engine lessor, indicated during the court that RP had written to them on June 5, 2023, informing them that they would permit engine inspection, but that RP had taken no action.

Venkatramani stressed the significance of inspecting the sophisticated and essential engines, each of which is worth $15 million. The engine lessor contended that it ought to be given the same treatment as aircraft lessors, who were permitted by the single bench of the Delhi High Court to check their parked aircraft.

Senior attorney Ramji Srinivasan responded by asking the court not to get involved in the NCLT proceedings since the ultimate ruling in the matter is anticipated on September 1. Go First’s motion was denied by NCLAT, who ruled that engine check must be permitted.

The Directorate General of Civil Aviation (DGCA) had not deregistered the aircraft, indicating their readiness for operations, and NCLT had granted Go First permission to utilize them and resume operations in July.

Daily hearings for the deregistration case brought by the aircraft lessors are taking place in front of the Delhi High Court’s single bench. Lessors are now able to inspect parked aircraft because the Supreme Court and the high court’s division bench upheld the single bench’s decision.

According to a previous Mint story, a Delhi High Court judgment has prevented Go First RP Shailendra Ajmera from raising money even though he has received license from the aviation authority DGCA.

In order to meet its insurance and other legal responsibilities, the airline has applied to the CoC for an emergency infusion of Rs. 100 crore.

Go First, formerly owned by the Wadia Group, filed for bankruptcy blaming Pratt & Whitney’s defective engines for its financial problems. On May 10, NCLT acknowledged the issue, suspended the board, and put a hold on the airline’s financial commitments.

A number of Go First aircraft lessors, including SMBC Aviation Capital, SFV Aircraft Holdings, and GY Aviation Lease, argued that they should be permitted to reclaim their leased aircraft as a result of the moratorium but NCLAT rejected their request to stay NCLT proceedings.

Later, lessors including Pembroke Aircraft Leasing 11 Ltd, SMBC Aviation Capital Ltd, Accipiter Investments Aircraft 2 Ltd, EOS Aviation 12 (Ireland) Ltd, SFV Aircraft Holdings IRE 9 DAC Ltd, ACG Aircraft Leasing Ireland Ltd, and DAE SY 22 13 Ireland Designated Activity Company approached the Delhi High Court and requested that the aircraft that had been leased to Go First be deregistered.

Here’s why nearly 150 Go First employees are set to resign in the next 2 weeks

Kashvi Basu — Wed, 16 Aug 2023 15:44:29 +0000

Previously grounded airline, Go First has been trying its level best to restart its operation but it faces another challenge to retain its employees as majority of the staff have planned to resign as the their salaries are either insufficient or not paid at all.

The employees have ceased to receive their salaries since the last three months of May, June, July. The employees have already started to look for jobs in other areas. According to senior executive of Go First, around 150 employees which includes 30 pilots and 50 cabin crew members as well are planning to resign in the next two weeks . The cash-strapped airline has been struggling to raise funds since posting its biggest annual loss in the fiscal year of 2022. Meanwhile, with a moratorium in force on financial obligations and transfer of assets of Go First at the rise of the insolvency resolution proceedings, the lessors are unable to deregister and take back the aircraft leased to the carrier. The lessors had earlier told the high court that denial of deregistration by the DGCA was “illegitimate”. The NCLT had on May 10 initially allowed the voluntary insolvency resolution plea of Go First. On May 22, the NCLAT upheld the order of the Delhi-based principal bench of NCLT, which had admitted the plea of Go First to initiate voluntary insolvency resolution proceedings, and appointed the IRP to suspend the company’s board.

As an after effect, several lessors had then approached aviation regulator DGCA for deregistration and repossession of 45 planes they had leased to the carrier. Go First had stopped flying from May 3rd of this year.

DGCA asked to de-register 54 aircrafts leased to Go First: MoS Civil Aviation

Adesh Dixit — Mon, 24 Jul 2023 14:18:49 +0000

According to state minister of civil aviation Gen V K Singh (Retd), the Directorate General of Civil Aviation (DGCA) has received requests from lessors to deregister a total of 54 aircraft that were leased to Go First.

The DGCA’s processing of the applications is contingent on how the cases before the National Company Law Tribunal, Delhi, and the High Court of Delhi turn out.

Go First, a Mumbai-based airline that ceased operations on May 3, has cancelled all of its flights through July 25 while going through an insolvency resolution procedure.

On Friday, the DGCA announced that it had authorized Go First’s proposal to resume operations with 15 aircraft and 114 daily flights, subject to a number of requirements, including the availability of the necessary emergency finance.

The airline’s resume plan, which calls for operating 15 aircraft and 114 daily flights, has been examined and approved, according to an announcement from the Directorate General of Civil Aviation (DGCA).

“The acceptance is subject to the outcome of the writ petitions/applications pending before the Hon’ble High Court of Delhi & Hon’ble NCLT, Delhi,” it stated.

As part of the airline’s protracted insolvency, Go Airlines (India) Ltd has so far received claims totaling 240 billion rupees ($2.9 billion) from operational and financial creditors, according to Reuters.

The procedure complies with legal standards, which give every creditor a right to payment and recourse by submitting claims if a business is bankrupt. The resolution specialist will investigate the validity of the claims when they are filed.

According to a banker with a state-run bank who has exposure to Go Airlines, “Claims from the lenders are around 50 billion rupees, while lessors’ claims amount to 180 billion rupees so far,” after a meeting of the committee of creditors on Friday.

According to the email, Go First airline won’t be able to accept reservations for its flights until the DGCA has approved its flight schedule.

On June 28, the airline’s Resolution Professional (RP) sent the restart plan to DGCA, who then performed a special examination of the carrier’s Mumbai and Delhi facilities.

In order to speed up the sale process, Go First Resolution Professional invited expressions of interest (EOI) from potential owners for the airline on July 10.

A public announcement states that the EoI submission deadline is August 9 and that the final list of prospective resolution applicants will be released on August 19.

Go First Insolvency Case: Delhi High Court hearing deferred to July 12

Viditha Ganji — Tue, 11 Jul 2023 16:43:06 +0000

A two-judge bench of the Delhi High Court on July 11 deferred to July 12 the hearing of appeals by grounded airline Go First’s resolution professional against the order of a single judge permitting the aircraft lessors to inspect and carry out maintenance work of their 30 aircraft and their parts twice in a month.

During the hearing today, senior advocate Rajiv Nayyar, appearing for one of the lessors, argued that the moratorium would not apply to them as they had terminated their leases prior to Go First being admitted to insolvency. He further argued that Go First cannot use the aircraft as the rules mandate that it cannot be used once the lease is terminated.

The bench at this point questioned the lessor on the applicability of Section 14 of Insolvency Bankruptcy Code, 2016, in this case. Section 14 prohibits the alienation or sale of any assets owned by a company under insolvency. Nayyar argued that the company does not own the asset as they have only been leased to them.

The bench also questioned Director General of Civil Aviation (DGCA) on why aircraft lessors could not undertake its maintenance. DGCA responded by stating that Go First is Continuous Airworthiness Maintenance Organisation (CAMO) compliant, while the lessors are not. According to DGCA, the Civil Aviation Requirements (CAR) do not permit any organisation other than CAMO compliant ones to maintain the aircrafts. DGCA also made it clear that they would not be able to permit Go First to resume operations unless they are certain that a CAMO compliant organisation is maintaining the aircraft.

Appearing for the RP, senior advocate Neeraj Kishan Kaul reiterated that Go First was ready to commence operations as soon as they get the requisite approval from DGCA. He further argued that the lessors had not terminated the leases despite knowing fully well that Go First was defaulting in payments since 2020, however they did so once Go First announced that it was filing for voluntary insolvency.

The court decided to continue the hearing on July 12 due to paucity of time.

The hearing of the Go First insolvency case is expected to be closely watched by other airlines and aircraft lessors in India. The outcome of the case could have implications for the future of the insolvency resolution process in the country.

Go First facilities in Delhi & Mumbai to undergo DGCA audit

Dixita Hazarika — Fri, 30 Jun 2023 13:11:25 +0000

According to a senior DGCA official, the Directorate General of Civil Aviation (DGCA) will be conducting an audit of Go First’s facilities in Mumbai and Delhi from 4th to 6th July focusing on safety. Following the audit, the regulator will take a call on whether to permit the cash-strapped airline to resume operations and sell tickets.

On 30th June, DGCA stated, “After a preliminary review of the resumption plan submitted by the Resolution Professional (RP) for Go First on June 28, 2023, DGCA has planned to conduct a special audit of the Go First facilities at Mumbai and Delhi.”

The airline’s resolution professional, Shailendra Ajmera and Chief Executive Officer Kaushik Khona on 28th June, gave a detailed presentation to the DGCA on the airline’s revival plan.

DGCA also stated that the audit will also be focusing on continued compliance with the requirements to hold an Air Operator Certificate, as well as on physical verification of the arrangements made for the resumption of flight operations.

The DGCA said, “The special audit to be conducted from July 4-6 shall be focused on the safety-related aspects and continued compliance of the requirements to hold an Air Operator Certificate, as well as on physical verification of the arrangements made for the resumption of flight operations.”

Go First plans to resume operations with 26 aircraft — 22 to be used and four to be kept on standby — at 22 airports and 78 routes with nearly 160 daily flights. The airline on 30th June formally submitted its revival plans to the DGCA after securing the committee of creditors’ nod for interim funding for Rs 450 crore.

In May, DGCA issued a show cause notice to the airline before directing it to stop the sale of tickets. It later issued another notice to the cash-strapped airline over the sudden cancellation of flights and failure to continue operations. The airline operated at 29 domestic destinations prior to the grounding, which has now been reduced to 23.

According to a DGCA official, “Jaipur, Lucknow, Kannur, Patna, Varanasi and Ranchi are not a part of their revival plan. The funds would be sufficient to run the airline for at least a year and a half.”

The revival of Go First gathered pace after the formation of the airline’s Committee of Creditors (CoC), composed of Bank of Baroda, Central Bank of India, IDBI Bank and Deutsche Bank, on 10th June.

To oversee the insolvency process, Shailendra Ajmera has been appointed as the resolution professional (RP) by the CoC of Go First . Ajmera has been entrusted with the task of formulating a revival plan, which will be submitted to the DGCA for review.

According to reports, the Wadia Group was looking to raise funds to restart Go First as soon as possible and had approached lenders to borrow up to Rs 225 crore,

Lenders to the cash-strapped airlines have said that they are open to providing new loans in order to revive their operations once a clear resolution plan is in place.

An insolvent company can raise funds to remain operational, as sanctioned by an interim RP. The sanctioned limit of funds can be raised in the future if lenders agree.

On 2nd May, Go First announced about it filing an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi. The announcement was made by Kaushik Khona,the airline’s Chief Executive Officer (CEO) shortly after the Wadia Group-owned carrier said it would temporarily suspend flight operations on May 3 and 4 due to a “severe funds crunch”.

Here’s the actual why Go First announced flight cancellations till June 30th

Viditha Ganji — Tue, 27 Jun 2023 19:36:53 +0000

In a recent announcement, Go First, an Indian airline, regretfully informed passengers that all flights scheduled until June 30th, 2023, have been cancelled due to operational reasons. The airline expressed sincere apologies for any inconvenience caused by the flight cancellations and acknowledged the significant disruption they may have caused to travel plans. However, Go First remains committed to providing assistance and ensuring a swift resolution.

Recognizing the impact on passengers, Go First assured affected travelers that they will receive all possible assistance during this challenging period. The airline is actively working towards resuming operations and has filed an application for immediate resolution and revival. These efforts reflect the company’s dedication to overcoming the current obstacles and restoring seamless travel experiences for their customers.

While bookings are temporarily suspended, Go First expressed gratitude for the patience and understanding shown by passengers during this time. The airline reassured travelers that they will be able to resume booking flights in the near future. As the situation progresses, Go First will keep passengers informed about the availability of flights and provide updates regarding their operations.

To offer personalized assistance and address individual concerns, Go First encouraged affected passengers to reach out to their Customer Care Centre. The dedicated team can be contacted at 1800 2100 999 or via email at feedback@flygofirst.com. By communicating with the airline, passengers can share their specific needs and receive guidance on the available options and solutions.

Go First remains committed to prioritizing the needs of its passengers and is working diligently to minimize the impact of the flight cancellations. The airline understands the importance of reliable and convenient air travel and is actively taking steps to restore its services.

As the situation unfolds, travelers are advised to stay updated through official channels and announcements from Go First. The airline’s focus on immediate resolution and revival of operations underscores its determination to overcome challenges and restore seamless air travel experiences for its valued customers.

During this period of uncertainty, Go First seeks to provide reassurance to its passengers, expressing sincere regret for any inconvenience caused and assuring them of the airline’s unwavering commitment to their needs. With a dedicated team working towards resolution and plans to resume bookings soon, Go First aims to swiftly restore its services and regain the trust of its customers.

As the airline navigates through this challenging period, it remains optimistic about the future and looks forward to resuming operations to serve passengers with safe and reliable air travel experiences once again.

Banks may consider financing Go First’s Rs. 400 crore interim funding request

Adesh Dixit — Sat, 24 Jun 2023 15:13:33 +0000

Go First lenders are looking to favour the airline’s request for Rs 400 crore interim funding in order to restart the operations.

As reported earlier, Go First halted its operations on May 2 and filed the application for insolvency on May 10. Today the airline’s resolution professional Shailendra Ajmera submitted a proposal and revival plan for the airline worth Rs 400 crore before the Committee of Creditors (CoC).

The creditors which include names like Bank of Baroda, Central Bank, Deutsche Bank and IDBI Bank have a collective exposure of Rs 6500 crore to the airline.

A person familiar with the process said, “The bank representatives met on Thursday and discussed the funding request, the revival plan has been analyzed and lenders are expected to decide in next two to three days after which additional funding will be released.”

The additional funds will be treated as interim finance which has priority over all the other debts in the insolvency process. The airline plans to operate 150 daily flights with 22 aircrafts in the initial phase. Ajmera along with other senior executives at Go First have approached DGCA to restart operations which the airlines operator intends to start from July 1.

Go First is also in legal tussle with aircraft engine manufacturer Pratt & Whitney (P&W) in which the airline operator secured an interim relief from Singapore International Arbitration Centre on March 30 when it directed P&W to supply certain quantity of engines to Go First till December 2023.

Go First RP seeks Rs. 425 crore in interim finance to restart operations

Adesh Dixit — Sat, 24 Jun 2023 12:46:17 +0000

The resolution professional of Go First Airlines Mr Shailendra Ajmera has sought Rs 425 crore in interim finances from the various financers in the airlines to execute a revival plan that would ensure the restart of airline operations in a full-fledged manner, as per the reports by Economic Times.

As per the report, the requirement for financing could be expanded based on factors such as the availability of working engines for aircraft as well as ticket cancellations.

The proposal for funds was put before Go First’s committee of creditors which includes the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank earlier this week. The Directorate General of Civil Aviation (DGCA) is yet to give approval to the airlines to restart operations. The approval is subject to the availability of adequate finances with the airlines. The creditors would need to approve the financing before DGCA so that Go First is greenlit to initiate restart of operations.

Go First filed for insolvency under the section 10 of Insolvency and Bankruptcy Code which led the company be a part of a court process for debt resolution. While submitting its insolvency application with National Company Law Tribunal (NCLT), the airlines said that it had defaulted on payments of Rs 2,600 crore to aircraft lessors and Rs 1,200 crore to vendors.

On June 24, Go First announced the extension to cancellation of flights till June 28 due to operational reasons. Earlier the flight was cancelled till June 24.

Go First Airlines sends shockwaves through the industry with unexpected flight cancellations until June 22nd

Aditya Bhagchandani — Mon, 19 Jun 2023 11:32:15 +0000

Go First, one of India’s prominent airlines, has taken the travel industry by surprise with its recent announcement of canceling all flights until the 22nd of June 2023. This unexpected development has created a wave of shock and left passengers stranded without prior notice.

The airline attributes this abrupt cancellation to operational reasons, although specific details have not been fully disclosed. Various explanations, ranging from technical issues to unforeseen circumstances, have been put forth to rationalize this unusual disruption. Regardless of the cause, the consequences have left travelers feeling bewildered and dissatisfied.

The cancellation poses a significant logistical challenge for affected passengers. The disruption of travel plans carries substantial financial implications, adding to the frustration experienced by customers. In this critical situation, Go First is under immense pressure to effectively communicate with affected individuals. It is essential for the airline to go the extra mile in assisting customers in finding alternative travel arrangements or providing suitable compensation to alleviate the inconvenience caused.

Go First has acknowledged the inconvenience caused by the cancellation and has directed customers to visit their website for further information. The airline encourages passengers to reach out with any queries or concerns they may have. Prompt and transparent communication is crucial to rebuilding trust and ensuring that customers’ needs are addressed during this challenging period.

Operational reasons force Go First to cancel flights until 19th June 2023, promising assistance and resolution

Viditha Ganji — Fri, 16 Jun 2023 02:44:44 +0000

In an unfortunate turn of events, Go First, a prominent airline, has announced the cancellation of its flights scheduled until 19th June 2023 due to operational reasons. The company sincerely apologizes for any inconvenience caused to passengers affected by these flight cancellations.

To rectify the situation and resume operations promptly, Go First has initiated an application for immediate resolution and revival. This proactive step demonstrates the airline’s commitment to swiftly resolving the operational issues at hand. Passengers are assured that Go First is working diligently to restore normalcy and resume flight bookings in the near future.

Go First deeply appreciates the patience and understanding of its passengers during this unforeseen disruption. The airline recognizes the inconvenience caused and seeks to mitigate the impact as much as possible. To facilitate communication and support, affected passengers are encouraged to contact Go First’s dedicated Customer Care Centre at 1800 2100 999 or via email at feedback@flygofirst.com. By reaching out, passengers can provide valuable feedback and seek personalized assistance to address their specific concerns.

The team at Go First is fully committed to assisting passengers affected by the flight cancellations and is eager to ensure a satisfactory resolution for each individual. Passengers are encouraged to communicate their needs, queries, and any other related issues to Go First’s dedicated customer support team. By actively engaging with affected passengers, Go First aims to alleviate concerns and provide suitable solutions tailored to each situation.

As the airline navigates through this challenging period, Go First remains focused on its commitment to providing reliable and efficient air travel services. With the support and cooperation of its valued customers, Go First is determined to overcome the operational hurdles it currently faces and emerge stronger than ever.

Passengers impacted by the flight cancellations are urged to stay updated through Go First’s official communication channels for further updates on the resolution process. The airline assures its passengers that their needs and well-being are its top priorities and that every effort is being made to rectify the situation swiftly.

Go First expresses gratitude to its passengers for their understanding, patience, and continued trust. The airline remains committed to delivering exceptional travel experiences and looks forward to serving its valued customers with renewed vigor once normal flight operations are restored.

Go First flight cancellation period extended till 26th May

News Desk — Wed, 17 May 2023 14:39:39 +0000

Go First, an ultra-low-cost airline based in India has announced that it would expand its flight cancellations.
The airline issued a message on Wednesday informing customers that their flight had been canceled and providing them with more information.

“It is with deep sorrow that we must notify you that, for to operational circumstances, Go First flights that were planned until May 26th, 2023 have been canceled. The airline expressed its regret for the disruption caused by the cancellation of flights by saying, “We apologize for the inconvenience.”

“We understand that the airline cancellations may have caused a hiccup in your trip plans, and we are dedicated to providing any and all support that we possibly can. You are probably already aware of the fact that the firm has submitted an application for quick resolution and the restart of activities. We will soon be ready to start taking reservations again. “We appreciate your patience,” the airline said in a subsequent statement.

The airline claimed a severe liquidity shortage owing to the delivery of defective engines by US aerospace company Pratt & Whitney as the basis for their decision to file for bankruptcy earlier this month, on May 2nd. The bankruptcy petition was submitted by the airline. The American company scoffed at Go First’s allegation, stating that it was baseless and had no basis in reality.

DGCA orders Go First to immediately stop sale of tickets until further instructions

News Desk — Mon, 08 May 2023 12:48:14 +0000

Directorate General of Civil Aviation (DGCA), an organization that is responsible for regulating civil aviation, issued an order on Monday instructing the bankrupt Indian airline Go First to immediately cease selling aircraft tickets until further instructions are issued.

The governing board issued a directive to the airline, requesting that it “cease booking and sale of tickets directly or indirectly, with immediate effect until further orders.”

The Go First was served with this notice “for failure to continue operations in a safe, efficient, and reliable manner.” The DGCA will make a decision about the airline’s license after 15 days of receiving the airline’s response.

“In light of the unexpected cancellation of flights and the beginning of the corporate insolvency resolution process under IBC by Go Airlines (India) Limited (Go First), the Directorate General of Civil Aviation (DGCA) has issued a show cause notice to Go First in accordance with the pertinent provisions of the Aircraft Rules, 1937, for their failure to continue the operation of the service in a safe, efficient, and reliable manner. It has been requested of the airline operator that they provide their response within the next 15 days of receiving this notice. A subsequent decision on the continuation of their Air Operators Certificate (AOC) will be made on the basis of the reply that is provided by them. In addition, the DGCA has instructed Go First to immediately cease the booking and sale of tickets in any manner, whether directly or indirectly, with immediate effect and until further directives are issued, as stated in the notification.

On Monday, Go First informed the National Company Law Tribunal that its lessors had begun the process of deregistering the carrier’s aircraft, and the company asked the court to make a quick judgment about its voluntary insolvency resolution plea.

CBI raids 7 locations including Jet Airways Chairman Naresh Goyal’s residence and offices in Mumbai

Banisitti Pratibha — Fri, 05 May 2023 13:36:25 +0000

On 5th May, Friday Central Bureau of Investigation (CBI) started a search operations at 7 locations in Mumbai including Jet Airways Chariman Naresh Goyal’s house and offices. As well as his wife, Anita Goyals’ and former airline Director Gaurang Ananda Shettys’ in an alleged Rs. 538 crore fraud case with Canara Bank.

CBI has registered a complaint of bank fraud from Canara Bank’s end including mismanagement of funds among other irregularities.

Jet Airways was aiming for ameliorating the circumstances after Jalan Kalrock Consortium won the bid for Jet Airways under the insolvency resolution process at National Company Law Tribunal (NCLT).

Once a pioneer of India’s private aviation industry, Jet Airways back in 2019, in the month of April, suspended its operations after a severe monetary shrink and debt. After that in 2021 the airline was taken over by Jalan Kalrock Consortium in June 2021.

In a statement the airline said it had been forced to stop their services because, “prolonged and sustained efforts with lenders and authorities did not yield the desired results.”

Aviation safety regulator DGCA renewed the airline’s air operator certificate in May, last year. Following that incident it was announced that the company will commence its services in September 2022. How ever till now the relaunch hasn’t taken place and the reason isn’t disclosed yet.

The CEO of Jet Airways has resigned from his post following the airline struggles to restart operations. Sanjiv Kapoor’s departure from the company led to few more influential resignations which includes manager PP Singh and Company Secretary Neeraj Manchanda earlier this week.

These unavoidable circumstances came forward after the airline’s ownership changes took place under the insolvency resolution plan which is now facing the difference of opinion between winning bidder and lenders.

Something similar like this happened with booming Indian airlines, Go First as its is also facing trouble now in order to continue it’s operations. On 2nd May, Tuesdayu Go First suspended all flights for three days staring from 3rd May. on 4th May, they extended the suspension by 10 days starting from 6th May. The airline has also filed for insolvency in the NCLT.

Go First joins list of India’s grounded airlines that have gone bankrupt; Check it out

News Desk — Thu, 04 May 2023 13:18:43 +0000

Nearly half of India’s airlines have gone under in the last two decades. The most recent victim to join this list is Go First Airlines, which filed for bankruptcy and immediately grounded all of its flights for May 4 and 5.

According to Boeing India President Salil Gupte, “India, in this region, is going to be the fastest-growing (aviation) market over the forecast period of 20 years.” This prediction was made a year ago.

However, as the purple alien from Titan warned, “reality is often disappointing,” as 13 airlines in India have closed in the last decade. Jet Airways and Kingfisher Airlines are just two examples of these major players.

After only five years in business, Paramount Airways went bankrupt. Air Pegasus, located in Bangalore, ceased operations a little over a year after it first took off.

Why have Indian airlines not been able to shake this curse off?

There are many factors different to all their situational aspects. From market sensitivity to price changes and expensive operations.

In contrast to low-cost carriers (LCCs), which offer cheaper fares overall but then tack on additional fees for things like checked bags and seat assignments, full-service carriers (FSCs) include all of these extras in the price of the ticket. Recently, the split has been around 80:20.

Unlike in the United States, where low-cost carriers (LCCs) generate money by selling seats on Global Distribution Systems (GDS) and via Travel agents, the rest of the world sees LCCs as profitable only when they offer tickets directly to customers through their websites.

But things are different in India, where no city even has a secondary airport, so primary and secondary designations are moot. As a result, the pricing will remain the same.

Indians are still heavily reliant on using travel agents, and airlines are having a hard time transitioning customers to using direct booking channels like their websites or mobile apps. When a commission is paid, it is because a third party, such as an agency or an app, facilitated the booking. The airline’s already slim profit margins are likely to take a hit from this.

Faint Returns

Just one day before takeoff, plane tickets are going for pennies on the dollar. If government fees weren’t taken out of airport and airline profits, the former would get just a fraction of the latter.

However, prices on monopoly routes are increasing rapidly, and this isn’t making travelers look into other options. Obviously, something is off-kilter.

Inadequate resources and financing

Investors have been wary of the airline industry ever since the debacles of Kingfisher Airlines and Jet Airways. From the standpoint of passenger volume, the company is one of the fastest expanding, but from the perspective of profitability, it is not.

Ray of hope

Expansion of airports, subsidies for airlines flying the RCS-UDAN route, and the development of a Flight Training Organisation are just a few of the positive steps done in the recent decade.

Aviation Turbine Fuel (ATF), which is used by aircraft and is prohibitively expensive in India, consumes the vast majority of the company’s earnings. There have been no calls to include ATF in the GST system.

Where, therefore, does the answer lie? Is it ticket prices that allow airlines to make a profit? That would lead to low levels of market stimulation, expansion in the single digits, and a slight increase in passenger numbers. Nothing about this will bring India any closer to its potential as a major market. But should India sacrifice airlines to realize this lofty goal, or does the country require a framework to protect its ecosystem?

NCLT reserves judgement after Go First’s request for an interim moratorium

Avinash Ram — Thu, 04 May 2023 12:40:46 +0000

Crisis-hit Go First said that the reason the company had filed for bankruptcy was due to its engine supplier’s faulty supply. The airline requested an interim moratorium during the hearing and said there was a chance the firm may be resurrected. The airline acknowledged its financial difficulties as well. The airline acknowledged that it is experiencing financial difficulties at the moment.

The National Company Law Tribunal has postponed its decision regarding the carrier’s appeal for a temporary suspension on financial obligations days after it filed for insolvency. Earlier this year, the airline owned by the Wadia company requested the start of insolvency resolution procedures. The airline’s proposal has been met with opposition from the aircraft lessors, who claim that bankruptcy procedures cannot be started without their input.

While considering a petition from the airlines, the court ruled that the Insolvency and Bankruptcy Code (IBC) does not include a provision for an interim moratorium.

The cash-strapped carrier accused US engine manufacturer Pratt & Whitney of forcing half of its fleet off the road. Go First claimed that there was a strong case for resurrection and that the tribunal should impose a moratorium.

The carrier stated in a document dated April 28 that there had been, “many, persistent, and continuing technical issues with the defective GTF Engines supplied by Pratt.”

According to CEO Kaushik Khona, the airline has requested to begin voluntary insolvency resolution procedures before the National Company Law Tribunal (NCLT).

In addition, the company claimed that the US manufacturer had also disregarded an arbitration ruling requiring it to provide the airline with spare engines and parts. There is now “a significant risk that Go First will go out of business and be forced to declare bankruptcy,” according to Go First.

Go First has cancelled all flights until May 9 and put a hold on bookings until May 15. The DGCA has issued an order requesting that the airline handle passenger reimbursements.

Due to operational reasons, Go First flights until 9th May 2023 are cancelled. We apologise for the inconvenience caused and request customers to visit https://t.co/qRNQ4oQjYT for more info. For any queries or concerns, please feel free to contact us. pic.twitter.com/mr3ak4lJjX

— GO FIRST (@GoFirstairways) May 4, 2023

Go First responded to the regulator on Tuesday after getting a show cause notice. They hinted that they had submitted an application to the NCLT under “Section 10 of the IBC” related to insolvency. The corporation had stated that it will decide on its next steps based on how their application to the NCLT turned out.

But as the holiday season gets underway, a lot of passengers are furious about the sudden cancellations and sharply rising ticket costs of other airlines.

Indian Oil Corporation plans to use bank guarantees to recover most of its dues from Go First

Sakshi Vats — Wed, 03 May 2023 16:53:21 +0000

According to reports, Indian Oil Corp Ltd. will recover $61.14 million in jet fuel sales to cash-strapped Go First by cashing in bank guarantees, and it is hopeful that it will also recover $6.11 million in recent unsecured sales.

One of the sources stated that, “IOC has already approached the banks for encashment of bank guarantees of 5 billion rupees($61.14 million) and that has been accepted by the banks.”

According to a second source, the Central Bank of India and the government-run Bank of Baroda both offered bank guarantees.

Prior to this Go First had filed for bankruptcy protection on Tuesday, received all of its jet fuel from IOC, the largest fuel supplier in the nation. Go First attributed the grounding of approximately half of its aircraft to “faulty” Pratt & Whitney engines when it filed for bankruptcy protection.

The buyers’ bank guarantees are mainly used by Indian retailers to support their sales of jet fuel to airlines.

After Go First filed for insolvency before the National Company Law Tribunal (NCLT) on May 2, the government-run Indian Oil Corporation Ltd (IOCL) revoked a bank guarantee worth Rs 500 crore given by the budget airline, according to two sources familiar with the situation said.

According to the sources, IOCL, Go First’s sole fuel supplier, has a balance that has not of almost Rs 50 crore at this time.

Due to a serious financial crisis, the airline controlled by the cash-strapped Wadia Group first declared on May 2 that it would temporarily stop flying operations on May 3 and May 4. Later that day, the business disclosed that a “severe fund crunch” had prompted it to submit an application for voluntary insolvency resolution procedures before the NCLT, Delhi.

An official from the OMC stated, “IOCL requested for the bank guarantee to be revoked yesterday (May 2) and it was accepted by the bank. Now only a small sum of around Rs 50 crore.

“Unlike some other airlines which suffered due to corporate governance and mismanagement issues, this seems to be a case of faulty engines. Once that is fixed, the problems can be resolved,” another IOCL official stated.

According to sources, IOCL will decide on future supplies after the aircraft begins operations, but normally in such situations, the corporation chooses a “cash-and-carry” strategy. This strategy calls for the buyer, in this case Go First, to purchase aviation fuel with an upfront payment in order to decrease the risk exposure of the OMC by requiring daily payment of dues.

According to sources, IOCL cancelled the bank guarantee provided by Bank of Baroda, which would have covered the majority of Go First’s current unpaid debts. A question made through email to IOCL and Go First did not receive a response until after this article was published.

“We have a 15-year-long relationship with Go First. We are hopeful that the airline will recover and restart operations and we will get our money since the main problem it seems is the faulty engines,” an IOCL spokesperson stated.

Go First’s CEO, Kaushik Khona, disclosed that on May 3 that the airline has been burning through cash at a rate of about Rs 200 crore per month since November and was unable to continue doing so, forcing it to file for insolvency. The voluntary insolvency of the airline will be heard by the NCLT in Delhi on May 4. As soon as NCLT accepts the application, the airline plans to resume operations.

While the pandemic’s impact on travel and the subsequent increase in fuel prices presented difficulties for most airlines, Go First also had to deal with faulty engines.

Go First was forced to halt half of its fleet due to Pratt & Whitney engines that were considered defective. As fewer aircraft were in service and the airline sought compensation from Pratt & Whitney for defective engines, its market share decreased, causing a loss of revenue and late payments to suppliers.

Because the American aerospace company refused to abide by the arbitral award made in the airline’s favour by the Singapore International Arbitration Centre (SIAC), the airline has placed the blame for its position on Pratt & Whitney.

According to a March 30 mandate from the SIAC, P&W must deliver 10 operational engines to Go First by April 27, 2023, and an additional 10 engines per month until December of this year. P&W, however, has declined to carry out the directive.

Go First filed a lawsuit with the Delaware court on April 28 asking for the execution of the Singapore arbitration panel’s award.

According to Khona, Go First requires at least 20 aircraft to restart operations and achieve a profit.

Pratt & Whitney, meanwhile, declared in a statement on May 3 that it is dedicated to the success of its airline clients. “We continue to prioritize delivery schedules for all customers. P&W is complying with the March 2023 arbitration ruling related to Go First. As this is now a matter of litigation, we will not comment further.”

Agitated Go First passengers left stranded by last-minute cancellations amid company’s woes

Avinash Ram — Wed, 03 May 2023 15:36:30 +0000

Go First Airlines stated on Tuesday that all of its scheduled flights from May 3 to May 5 will be cancelled, and that all customers will get a full refund.

Passengers who purchased tickets with the airlines were left stranded when Go First Airlines stopped flights due to insolvency.

“I left Meerut around 3 am, but after reaching here I got to know that my flight has been cancelled…no one is ready to say anything clearly..” stated a passenger, Harender Singh.

Go First Airlines’ official media account posted on Twitter, “Due to operational difficulties, Go First flights for May 3, 4, and 5, 2023, have been cancelled. We sincerely sorry to all of our devoted clients. You can count on us to return shortly with additional details. Soon, a complete refund will be processed using the original payment method.

“I had to book another flight after getting the message. I spent Rs 15,000 again…” said a passenger, Praveen Kumar.

The Government of India has been aiding Go First Airlines in every way possible, but it is the airline’s responsibility to organize alternate transport for customers so that they do not experience difficulty, according to Union Civil Aviation Minister Jyotiraditya Scindia.

Minister Jyotiraditya Scindia said, “Go First has been faced with critical supply chain issues with regard to their engines. The GOI has been assisting the airline in every possible manner. The issue has also been taken up with the stakeholders involved.”

Go First Airlines said on Tuesday that operations will remain cancelled as a result of the US-based jet engine manufacturer’s failure to provide engines.

Go First is experiencing financial difficulties as a result of the US-based Pratt and Whitney (P&W) jet engine manufacturer’s refusal to deliver engines, which necessitated the grounding of more than 50 aircraft.

Go First suspends flight operations, files for insolvency amid financial crisis

News Desk — Tue, 02 May 2023 12:41:54 +0000

The Indian airline business Go First has decided to cancel all of its flights on the 3rd and 4th of May. The Wadia Group, which owns the failing airline, is reticent to invest further in the company’s operations.

According to the chief executive officer of the airline, Kaushik Khona, who was describing the issue to PTI, the airline has been forced to apply for voluntary insolvency resolution procedures due to the suspension of operations. These processes will take place before the National Company Law Tribunal in Delhi.

“It is an unfortunate decision… but it had to be done to protect the interests of the company,” said Khona. “Go First is facing a financial crunch due to the non-supply of engines by Pratt & Whitney, which has forced the company to ground 28 planes.” “It is an unfortunate decision… but it had to be done to protect the interests of the company.”

The airline now has over 3,000 workers and has already told the government that they would be presenting a full report to the Director General of Civil Aviation. However, according to the CEO, the airline will not begin flying operations until after the insolvency application has been accepted.

In a statement that was released on Tuesday afternoon, Go First said that it ‘had to take this decision owing to the ever-increasing number of malfunctioning engines’ that were provided by the American firm Pratt & Whitney. According to the airline, these malfunctions were responsible for the grounding of 25 aircraft as of May 1; this is over half of their whole fleet.

Go First receives DGCA show cause notice for leaving 55 passengers

Aryan Jakhar — Tue, 10 Jan 2023 16:33:11 +0000

The low-cost airline GoFirst issued a statement on January 10, one day after the GoFirst flight from Bengaluru to Delhi took off, leaving 55 passengers behind. The statement explained that a lack of proper communication, coordination, reconciliation, and confirmation resulted in the highly avoidable situation.

On January 9, irate passengers who had been left waiting in a passenger bus on the tarmac resorted to Twitter to demand explanations from the airline that they were flying with. In their tweets, a few of them also mentioned the offices of Prime Minister Narendra Modi and Minister of Civil Aviation Jyotiraditya Scindia.

On the 10th of January, GoFirst issued a statement in which it stated that “many blunders, such as lack of adequate communication, co-ordination, reconciliation, and confirmation, have resulted in a highly preventable situation.”

The DGCA has asked them to provide an explanation as to why enforcement action should not be taken against them for failing to fulfil their regulatory requirements, and they have been given until April 5 to respond. The airline has been given a deadline of two weeks to provide their response, and once that deadline has been met, additional action will be taken.

According to the DGCA regulations, the airline is responsible “to ensure adequate arrangements for ground handling, preparation of load and trim sheet, flight dispatch, and passenger/cargo handling, and also ensure that all the ground handling staff engaged in passenger handling undergo periodic soft skill training for sensitization, courtesy, behaviour, and procedures for assisting the passengers.”

The event takes place at a time when airlines are under increased scrutiny regarding the way in which they treat their passengers. This comes after several incidents of misbehaviour have been reported on flights, including two instances of drunk flyers urinating on fellow passengers and another of people drinking alcohol on domestic flights.

Go First flight onbound to Male makes emergency in Coimbatore

Pranay Maniar — Fri, 12 Aug 2022 12:45:47 +0000

A Go First flight carrying 92 passengers from Bengaluru to Male made an emergency landing at Coimbatore airport after the engine overheat warning bell rang, an hour after the take-off. The airline was using the Airbus A320 Neo named VT-WGZ.

Flight G843 departed Kempagowda International Airport at 11:45 am today and was scheduled to make an arrival in Male, Maldives at 1:30 pm IST.

According to a report from The Hindu, the aircraft’s pilot sent a mayday signal while crossing Coimbatore’s airspace and the distress signal was attended by Cochin International Airport ATC (air traffic control) which directed them to divert the flight to Coimbatore.

The airline spokesperson said that all the 92 passengers onboard the aircraft had safely disembarked and the matter is being investigated by Go First’s crew of engineers

“The matter is being inspected by the Go First engineering team and rectification is underway,” added the spokesperson of the airline.

The flight will depart for Male after 5 pm after following certain procedures.

Authorities at the Coimbatore airport, where the aircraft was being inspected, checked the engines and declared that there was some fault in the alarm and declared that the aircraft was fit to fly.

Just last month Civil Aviation Minister, Jyotiraditya Scindia held a meeting with top officials of Indian carriers and urged them to take all necessary steps that are needed to ramp up safety oversight after multiple reports of technical malfunctions.