Airfares may go up as Go First goes off air, files for insolvency
1 year, 7 months ago

Airfares may go up as Go First goes off air, files for insolvency

Deccan Chronicle  

NEW DELHI: No-frills carrier Go First filing for insolvency proceedings and cancelling flights is bad for the airline industry as the move will reduce capacity and could push airfares in certain routes, travel agents' grouping TAAI said on Wednesday. Bogged down by an acute financial crunch due to grounding of more than half of its fleet amid P&W engine supply woes, Go First has cancelled flights for three days starting May 3. we lost crores of rupees in Kingfisher Airlines, in Jet Airways and we have another one going into insolvency," Travel Agents Association of India president Jyoti Mayal said. At Mumbai airport, another passenger Rakesh was to travel to Lucknow and with the Go First flight cancelled, he was planning to go by train.

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History of this topic

Jet Airways liquidation: Why India needs a new regime to save airlines
1 month, 1 week ago

Jet Airways liquidation: Why India needs a new regime to save airlines

Live Mint  

Learning by doing is about the only way to master swimming, cycling or yoga, but does it apply to harnessing India’s Insolvency and Bankruptcy Code as well, particularly in the case of airlines? After Go Air, it is now Jet Airways’s turn to go into liquidation after an insolvency resolution process under IBC failed to sell the business as a …

Grounded, by process
1 month, 2 weeks ago

Grounded, by process

Times of India  

Times of India’s Edit Page team comprises senior journalists with wide-ranging interests who debate and opine on the news and issues of the day. As Supreme Court calls it curtains on Jet Airways, it’s another tragic tale of another short-lived star business and the challenges of sustaining airline ops in a competitive, high-cost environment. But the real concern is a …

Jet Airways liquidation: A wake-up call for India’s insolvency code
1 month, 2 weeks ago

Jet Airways liquidation: A wake-up call for India’s insolvency code

Live Mint  

New Delhi: The Supreme Court’s decision ordering the liquidation of Jet Airways, once India’s leading airline, has provided sufficient fodder for bankruptcy experts urging for an overhaul of India’s insolvency framework. JKC’s repeated non-compliance with the terms of the resolution plan caused the value of the plan to diminish significantly," said Devesh Dubey, senior associate at Sanjay RPK Law, a …

Court ruling takes the wind off GoFirst insolvency resolution
7 months, 3 weeks ago

Court ruling takes the wind off GoFirst insolvency resolution

New Indian Express  

The Delhi High Court’s recent order allowing the Directorate General of Civil Aviation to process the applications filed by several lessors for deregistration of 54 planes is a body blow to the resolution process of Go First. Go First has been going through the insolvency resolution process since May 10 last year. The airline’s process is being overseen by resolution …

GoFirst's last stand with two suitors in the wings: Understanding airline insolvency in India
8 months, 1 week ago

GoFirst's last stand with two suitors in the wings: Understanding airline insolvency in India

Hindustan Times  

Earlier this week, the National Company Law Tribunal extended the moratorium period on Go First’s dues and leased aircraft by another 60 days giving the grounded airline a final chance to get new owners. Go First has two suitors — a consortium of SpiceJet chief Ajay Singh and Busy Bee Airways and Sharjah-based Sky One — who have shown interest …

IBC can’t resolve airline bankruptcies: Experts at Mint BFSI Summit
11 months, 1 week ago

IBC can’t resolve airline bankruptcies: Experts at Mint BFSI Summit

Live Mint  

The Insolvency and Bankruptcy Code can't resolve airline bankruptcies, according to RK Bansal, CEO and managing director of asset reconstruction company Edelweiss ARC. Speaking during a panel discussion titled ‘IBC and Banks: Challenges and Solutions’ at the Mint BFSI Summit and Awards 2024, Bansal highlighted a fundamental issue in the Indian aviation sector – most airlines don't own their planes …

GoFirst flights grounded for almost 2 months after it filed 'insolvency' | READ
1 year, 6 months ago

GoFirst flights grounded for almost 2 months after it filed 'insolvency' | READ

India TV News  

Go First update: Crisis-hit airline Go First on Wednesday announced that its scheduled flight operations will remain cancelled till June 25 due to operational reasons. Earlier, the airline said that operations would remain cancelled till June 22. Early this May, Go First filed for bankruptcy at the National Company Law Tribunal and suspended its flight operations due to rising losses, …

Go First Insolvency: A Prospective Case for a Precedent in Bidding for Control of Insolvent Entity - News18
1 year, 7 months ago

Go First Insolvency: A Prospective Case for a Precedent in Bidding for Control of Insolvent Entity - News18

News 18  

Go First may have been the first airline in India to file for protection under Section 10 of the Insolvency and Bankruptcy Code but not the first globally to undergo insolvency in 2023. Alternately, under Section 30 of the IBC, submitting a resolution plan subject to Section 29A prohibits the promoters of a company undergoing insolvency from participating in the …

Explained: Why Go First crisis could increase cost of air travel in India
1 year, 7 months ago

Explained: Why Go First crisis could increase cost of air travel in India

India Today  

The admission of beleaguered low-cost airline Go First’s voluntary insolvency plea by the National Company Law Tribunal has upset global aircraft lessors – a development that could significantly increase the cost of operations for airlines, and subsequently increase the cost of flying. Following the NCLT’s decision to accept Go First’s voluntary insolvency plea, the world’s second-largest aircraft lessor, SMBC Aviation …

Go First's insolvency flight leaves trail of concerns for aircraft lessors
1 year, 7 months ago

Go First's insolvency flight leaves trail of concerns for aircraft lessors

Firstpost  

At least 50 requests to take back as many leased planes from two Indian airlines in less than two weeks. Cash-strapped Go First being admitted for insolvency resolution proceedings on a voluntary plea and subsequent moratorium has left a trail of concerns and uncertainties for aircraft lessors with respect to India, the world’s third-largest aviation market. Regional airline Star Air’s …

Go First insolvency: What happened so far with the domestic carrier?
1 year, 7 months ago

Go First insolvency: What happened so far with the domestic carrier?

Hindustan Times  

After more than a week of uncertainties, the skies seem to be more clear for the cash-starved airline Go First. Following is the brief chronology of developments in the last nine days. Go First filed for insolvency resolution proceedings in the National Company Law Tribunal. Read here: NCLT initiates Go First airline’s plea to initiate insolvency resolution May 2 - …

NCLT initiates insolvency proceedings for Go First
1 year, 7 months ago

NCLT initiates insolvency proceedings for Go First

Hindustan Times  

The National Company Law Tribunal on Wednesday admitted Go First’s voluntary plea under the Insolvency and Bankruptcy Code and awarded the airline bankruptcy protection. Go First has suspended sale of tickets till May 15 The airline had last week filed for insolvency resolution proceedings in the NCLT while also announcing the suspension of the sale of tickets till May 15. …

Go First’s insolvency has policy riddles we must resolve
1 year, 7 months ago

Go First’s insolvency has policy riddles we must resolve

Live Mint  

Go First may have been the first airline in India to file for protection under Section 10 of the Insolvency and Bankruptcy Code in 2023, but was not the first globally to face a solvency crisis. To this purpose, India is looking to introduce a separate framework that’s consistent with the Cape Town Convention, as certain provisions of the Convention …

Go First crisis: Lessors approach DGCA to deregister 45 of 55 planes
1 year, 7 months ago

Go First crisis: Lessors approach DGCA to deregister 45 of 55 planes

Live Mint  

Aircraft lessors on Tuesday approched the DGCA for deregistration of 45 planes of the cash-strapped Go First Airways. On Monday, Go First requested the National Company Law Tribunal for an early decision on its plea for voluntary insolvency resolution proceedings before the two-member bench headed by tribunal President Ramalingam Sudhakar. As many as 28 planes or more than half of …

Go First crisis: Lessors seek deregistration of 36 planes
1 year, 7 months ago

Go First crisis: Lessors seek deregistration of 36 planes

Live Mint  

Lessors Monday urged the Directorate General of Civil Aviation to deregister 13 more Go First aircraft to secure their assets. Earlier, on Thursday they has applied for deregistration of 23 planes of the cash-strapped Indian airline before the insolvency process begins.The lessors have so far sought the deregistration of 36 planes of Go First. The Go First today requested the …

Travel agents struggle with refunds as Go First extends cancellations
1 year, 7 months ago

Travel agents struggle with refunds as Go First extends cancellations

Hindustan Times  

A day after budget carrier Go First, which has filed for bankruptcy, extended flight cancellations by another three days to May 12, the Travel Agents Association of India on Saturday said that its members couldn’t refund passengers without the airline refunding them. “Hundreds of travel agents across the country have placed substantial deposits with your airline in a credit shell …

Insolvency petitions against Go First to be heard on May 8
1 year, 7 months ago

Insolvency petitions against Go First to be heard on May 8

Hindustan Times  

As Go First awaits the NCLT ruling on its voluntary insolvency resolution plea, the tribunal is set to hear on Monday two petitions seeking insolvency proceedings against the crisis-hit airline. Go First airline With liabilities of ₹11,463 crore and a financial crunch, the Wadia group-owned airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on financial …

GoFirst crisis: Wadia Group seeking a one-time settlement offer
1 year, 7 months ago

GoFirst crisis: Wadia Group seeking a one-time settlement offer

Live Mint  

The Wadia Group, which owns the struggling airline Go First, is expected to request a settlement with banks that would involve creditors accepting a significant reduction in the amount owed, The Financial Express has reported. This means that the airline itself initiated the insolvency proceedings instead of creditors taking the debtor to the National Company Law Tribunal for debt recovery. …

NCLT reserves order on Go First's plea for insolvency resolution proceedings
1 year, 7 months ago

NCLT reserves order on Go First's plea for insolvency resolution proceedings

The Hindu  

The National Company Law Tribunal on May 4 reserved its order on crisis-hit airline Go First's plea seeking voluntary insolvency resolution proceedings. A two-member bench headed by President Justice Ramalingam Sudhakar concluded the day-long hearing during which the Wadia group-controlled airline sought initiation of insolvency resolution proceedings and an interim moratorium on its financial obligations. The Directorate General of Civil …

Cash-strapped Go First stops ticket sales till May 15, DGCA orders full refunds
1 year, 7 months ago

Cash-strapped Go First stops ticket sales till May 15, DGCA orders full refunds

Hindustan Times  

Days after it filed for voluntary insolvency before the National Company Law Tribunal, cash-strapped airline Go First has informed the Directorate General of Civil Aviation that it has suspended the sale of tickets till May 15. In a statement, the aviation regulator referred to the showcause notice issued to the airline, and said that Go First had intimated that they …

With Go First’s fate up in air, staff head for exits
1 year, 7 months ago

With Go First’s fate up in air, staff head for exits

Live Mint  

Employees of Go First airline, which filed for bankruptcy on Tuesday, are wasting no time seeking new job opportunities as rival airlines expand operations, unlike employees of grounded Jet Airways, who held on to the futile hope of a revival for more than four years. Adding to the uncertainty surrounding Go First’s future, parent Go Airlines Ltd has fallen behind …

Go First moves NCLT, says total dues to creditors at over ₹11k crore
1 year, 7 months ago

Go First moves NCLT, says total dues to creditors at over ₹11k crore

The Hindu  

Go First approached the National Company Law Tribunal on Wednesday and sought the admission of its insolvency plea. According to Reuters, the airline in its petition before the court said that its total liabilities to all creditors stood at ₹11,463 crore, which includes dues to banks, financial institutions, vendors and aircraft lessors. The petition lists Central Bank of India Ltd., …

Airfares likely to rise as Go First cancellations reduce capacity: TAAI
1 year, 7 months ago

Airfares likely to rise as Go First cancellations reduce capacity: TAAI

The Hindu  

No-frills carrier Go First filing for insolvency proceedings and cancelling flights is bad for the airline industry as the move will reduce capacity and could push airfares in certain routes, Travel Agents Association of India said on May 3. Bogged down by an acute financial crunch due to grounding of more than half of its fleet amid P&W engine supply …

Go First to suspend flights on May 3, 4 amid severe fund crunch
1 year, 7 months ago

Go First to suspend flights on May 3, 4 amid severe fund crunch

Deccan Chronicle  

MUMBAI: Wadia group-owned Go First will temporarily suspend flights on May 3 and 4 amid severe fund crunch, the airline's chief Kaushik Khona said on Tuesday. The budget carrier has also filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal, Delhi. Speaking to PTI, Khona said the airline has grounded 28 planes, more than half …

OPINION: With Insolvency & Bankruptcy Code, Air India Privatisation, Modi Govt Bites the Reform Bullet
3 years, 2 months ago

OPINION: With Insolvency & Bankruptcy Code, Air India Privatisation, Modi Govt Bites the Reform Bullet

News 18  

The steps taken by the Modi government over the last few years from enacting Insolvency & Bankruptcy Code to sharpening other laws have helped banks recover over Rs 5.5 lakh crore of bad debt, including close to Rs 1 lakh crore from accounts that had been technically written off. As opposed to the CIRP where the obligation of handling the …

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