Image Source : FILE Go First
The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of Go First, marking a dramatic end to the airline’s 17-year legacy in the Indian aviation industry. The decision follows the airline’s prolonged financial struggles, which led to the suspension of its operations nearly three years ago. In May 2023, Go First filed for insolvency, citing severe financial distress, and subsequently entered into an insolvency resolution process that ultimately failed to find a sustainable solution.
A 17-year legacy of Service
Go First, formerly known as Go Air, had been serving passengers for over 17 years. Initially, it operated domestic flights, beginning with a route from Mumbai to Ahmedabad in 2005-06. Over the years, it expanded to international routes and had a fleet that included Airbus aircraft, with significant orders placed for 72 A320neo planes. However, the airline’s financial difficulties became insurmountable, with the company reporting a loss of Rs 1,800 crore for the fiscal year ending March 2023.
The Liquidation decision
The NCLT’s liquidation order comes after the airline’s insolvency proceedings failed to yield any viable outcome. The Committee of Creditors (CoC) had been given the authority to decide on liquidation, and after its formation, the decision was taken to wind up the company. Despite interest from potential buyers, including Ajay Singh of SpiceJet and Sharjah-based Sky One, no resolution could save the airline.
Cancellation of aircraft registrations
The situation worsened when the Directorate General of Civil Aviation (DGCA) revoked the registration of 54 Go First aircraft, further sealing the airline’s fate. The airline’s ongoing insolvency proceedings were unable to revive its operations, leading to the NCLT’s final decision.
The end of an era
Go First’s collapse is a stark reminder of the challenges within the volatile aviation industry. The airline’s failure to recover from its financial crisis and its inability to secure a successful resolution plan have resulted in the abrupt end of its operations. Thousands of employees and passengers are now affected by the airline’s liquidation, leaving the future of the once-popular carrier uncertain.
