Go First Airline
The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of aviation company Go First. The company’s operations have been closed for the last three years due to financial problems. The airline had applied for voluntary insolvency resolution process in May 2023 citing financial crisis. The tribunal said in a 15-page order that the company Go Airlines (India) Ltd. Is ordering the liquidation of.
Served for more than 17 years
The NCLT said the scheme empowers the Committee of Creditors (CoC) to decide on liquidation of the company concerned at any time after its formation and before the confirmation of the resolution plan. Go Air was renamed Go First. The company provided flight services for more than 17 years. The airline’s operations are suspended from May 3, 2023. During the insolvency resolution process, at least two bidders were SpiceJet chief Ajay Singh along with Busy Bee Airways and Sharjah-based aviation unit Sky One. Nishant Pitti, co-founder of travel portal Ease My Trip, is the majority shareholder in Busy Bee Airways.
Registration of 54 aircraft canceled
Meanwhile, aviation regulator DGCA has canceled the registration of 54 aircraft of Go First. The resolution process did not progress and now the tribunal has ordered the liquidation of the airline. The airline began domestic operations in 2005–06 with the first flight from Mumbai to Ahmedabad and then international operations in 2018–19. Since commencing operations, GoFirst has placed two orders for 72 A320neo aircraft with Airbus. These orders were placed in 2011-12 and 2016-17. The cash-strapped airline reported a loss of Rs 1,800 crore in the financial year ending March 2023.
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