NCLT orders liquidation of Go First airline: Here's what happened
What's the story
The National Company Law Tribunal (NCLT) has ordered the liquidation of low-cost airline Go First. The decision was taken by a bench of Judicial Member Mahendra Khandelwal and Technical Member Dr. Sanjeev Ranjan, on an application filed by the Committee of Creditors (CoC) of Go First. The CoC had filed this application in 2024 after realizing the airline had no aircraft left and no viable options for revival.
Fleet reduction
Fleet and financial woes
By September 2024, a quarter of Go First's initial fleet of 54 aircraft had already left India. The rate at which planes were leaving only accelerated over the next three months, with over half the fleet having left by December 31, 2024. According to the lawyers representing the CoC in NCLT, lessors had repossessed 28 out of the airline's total 54 aircraft by year-end.
Insolvency process
Insolvency journey and debt details
Go First had started a voluntary insolvency resolution process in May 2023. The airline owes ₹6,521 crore to various lenders including Bank of Baroda, Central Bank of India, Deutsche Bank, and IDBI Bank. Central Bank of India has the highest exposure at ₹1,987 crore followed by Bank of Baroda with ₹1,430 crore.
Remaining assets
Remaining assets and additional liabilities
Go First's only major asset left is a 94-acre land in Thane, which the Wadia Group had pledged as collateral to the banks. The land is valued at around ₹3,000 crore. Other assets include an Airbus training facility in Mumbai and the airline's headquarters. Apart from its bank debts, Go First also owes around ₹2,000 crore to different aircraft lessors.
Outstanding dues
Outstanding payments and total liabilities
Go First owes around ₹1,000 crore to its vendors, about ₹600 crore to travel agents, and ₹500 crore to customers waiting for refunds. The airline had also availed ₹1,292 crore under the government's emergency credit scheme during the COVID-19 crisis. Including its dues to lessors, the total liabilities of this low-cost airline stand at around ₹11,000 crore.