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Go First Crisis: GoFirst, an airline providing affordable services facing cash crunch, has appealed to the National Company Law Tribunal (NCLT) to give several interim directions. Go First has said in its appeal that the NCLT should restrain the lessors of aircraft from taking back their aircraft and at the same time direct the Directorate General of Civil Aviation (DGCA) not to take any coercive action.
NCLT will hear the appeal of Go First today
The Wadia Group-owned airline has a liability of Rs 11,463 crore. The company has applied for voluntary insolvency resolution process. The Delhi bench of NCLT will hear the appeal of Go First on Thursday. Go First has canceled all its flights for three days from May 3.
What does the airline company want?
In its petition filed before the NCLT, the airline has appealed to restrain the aircraft lessors from taking any recovery action as well as restrain the DGCA and suppliers of essential goods and services from coercive action. The appeal also asked the DGCA, the Airports Authority of India (AAI) and the private airport operator not to cancel the departure and parking slots allotted to the airline. The airline also wants fuel suppliers to continue to supply for aircraft operations.
Why did the crisis arise for the airline company?
GoFirst started flying more than 17 years ago. The airline has said that more than half of its fleet is grounded due to non-supply of engines by Pratt & Whitney, which has led to the situation. The total liability on the airline is Rs 11,463 crore. This also includes the amount of Rs 3,856 crore that it has defaulted in repaying to operational creditors. The dues of aircraft leasing companies are Rs 2,600 crore.
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