NEW DELHI: The GoAir revival saga could come to an end this week with the Committee of Creditors (CoC) going to decide whether to opt for liquidation or for a second round of inviting expression of interest (EOI). The Wadia Group airlinehad stopped flying on May 2, 2023, and the National Company Law Tribunal (NCLT) had admitted its plea for voluntary insolvency eight days later.The 270-day prescribed deadline for completing cases under IBC will soon be ending, and with no bidder in the first round, chances of banks going in for a second round of EoIs seem bleak, say people in the know.
“Also, courts are yet to decide whether the government notification excluding aircraft and engines from assets that get moratorium from repossession by lessors from an operator under IBC is applicable with retrospective effect (which will cover Go) or not. If the committee of creditors decide to go in for liquidation, then the aircraft will return to lessors. We are nearing the end of the 270-day period and a final decision is expected within a week to 10 days,” said people in the know.
Go’s EY-backed resolution professional Shailendra Ajmera could not be reached for comments.
GoAir had 56 leased aircraft when it suspended operations. Lessors of both engines and aircraft are fighting to take them back. A quick decision on them could help prevent airfare shocks next summer when almost 200 aircraft could be grounded in India due to a combination of factors including Pratt & Whitney’s (PW) unending engine woes. According to aviation consultancy CAPA India, 161-166 planes of IndiGo, Air India, Go First and SpiceJet are grounded in the country and this number could increase to 196-201 aircraft by the end of March 31, 2024.
“Also, courts are yet to decide whether the government notification excluding aircraft and engines from assets that get moratorium from repossession by lessors from an operator under IBC is applicable with retrospective effect (which will cover Go) or not. If the committee of creditors decide to go in for liquidation, then the aircraft will return to lessors. We are nearing the end of the 270-day period and a final decision is expected within a week to 10 days,” said people in the know.
Go’s EY-backed resolution professional Shailendra Ajmera could not be reached for comments.
GoAir had 56 leased aircraft when it suspended operations. Lessors of both engines and aircraft are fighting to take them back. A quick decision on them could help prevent airfare shocks next summer when almost 200 aircraft could be grounded in India due to a combination of factors including Pratt & Whitney’s (PW) unending engine woes. According to aviation consultancy CAPA India, 161-166 planes of IndiGo, Air India, Go First and SpiceJet are grounded in the country and this number could increase to 196-201 aircraft by the end of March 31, 2024.
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