Crash landed Go First is safe for now, thanks to NCLT

Go First

Rama Krishna Sangem

Go First, India’s 4th largest airline, that filed insolvency petition on May 2, is given protection of moratorium by NCLT (National Company Law Tribunal) on May 10, Wednesday. That means, the lenders, vendors and lessors of beleaguered private airline cannot press for immediately repayment of their dues.  Go First, owned by Wadia family, sits on a pile of debt of around Rs 11,469 crore.

The airline with a fleet of as many as 56 airplanes, has stopped operations from May 3, and 4, and stopped fresh bookings and failed to return the advanced booking amounts to passengers. Once the airline is grounded, all debtors – lenders, vendors and lessors and travel agents – started demanding their dues. If they are allowed to have their way, Go First’s entire assets would disappear within no time.

That would also make any form of its revival just impossible. Once a running company (going concern, in the language of IBC – Insolvency and Bankruptcy Code) stops being so, all debtors will have to take heavy haircuts. Luckily, NCLT bench headed by Justice Ramalingam Sudhakar and Justice LN Gupta on Wednesday saved it from the ordeal.  They provided the bankruptcy protection as sought by the airline in its petition.


Abhilash Lal is IRP

The NCLT bench appointed Abhilash Lal as the IRP (Insolvency Resoluiton Professional), who will mediate between the  promoters and the debtors and stakeholders to solve the problem and try to keep the concern going.At the same time,  the tribunal ordered now suspended board of directors, led by Wadias, to deposit Rs 5 crore to make immediate payments.

Go First, which came into being 17 years ago, in 2006, has blamed its crises on aircraft engines supplier, Pratt & Whitney (P&W), for selling it faulty machines that led to grounding of half of its fleet – 28,thus making it nonviable to continue normal operations.  P&W and a few other debtors have filed petitions opposing any moratorium to the airline, as it would further worsen the situation. It’s to be seen how NCLT helps Go First take off from this crisis.


Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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Rama Krishna Sangem

Excel India national news magazine is a media startup founded and piloted by Rama Krishna Sangem, a Hyderabad based senior journalist with over three decade experience in the field of media, mostly in print journalism. His rich experience in reporting for both Telugu and English newspapers and heading a TV news channel and some online outfits will be of immense use to this venture. Excel India English news magazine seeks to fill the gap of analytical understanding to our readers who today are confronted with myriad media platforms. Our online version not only offers regular updates and commentary on happenings around us, but also gives larger stories not limited by space constraints of a print magazine. Excel India is ably run by a team of senior journalists committed to values and quality standards in the profession. We urge you all to support and guide us in this endeavour. Reach us at