NCLT orders liquidation of Go First
New Delhi: The National Company Law Tribunal (NCLT) has ordered the liquidation of Go First, marking the final chapter for the budget airline that ceased operations in May 2023. The decision, detailed in a 15-page order on Monday, comes after months of unsuccessful attempts to find a viable resolution for the financially troubled carrier.
The tribunal’s decision largely hinged on the unanimous recommendation from the Committee of Creditors (CoC), which voted with 100 per cent approval for liquidation. In its ruling, the NCLT emphasised that it found “no merit in interfering with the commercial wisdom of the CoC,” acknowledging the committee’s authority to make liquidation decisions at any point after its formation and before confirming a resolution plan.
Despite attracting potential investors during the insolvency resolution process, including Busy Bee Airways (backed by SpiceJet chief Ajay Singh) and Sharjah-based Sky One, no successful resolution emerged. Adding to the airline’s challenges, the Directorate General of Civil Aviation (DGCA) deregistered all 54 aircraft in Go First’s fleet during the process.
The airline’s journey, which began in 2005 with its inaugural Mumbai-Ahmedabad flight, spanned over 17 years of operations. Go First, originally launched as Go Air, had ambitious expansion plans, evidenced by two separate orders of 72 Airbus A320 neo aircraft each—one in 2011-12 and another in 2016-17. The carrier achieved a significant milestone in 2018-19 by launching international operations.
However, financial troubles plagued the airline in its final years. The company reported substantial losses in the fiscal year ending March 2023, with total losses reaching approximately Rs 1,800 crore, including Rs 800 crore in notional losses due to accounting standards.
The collapse of Go First, which operated for nearly two decades, leaves a void in the market and raises questions about the sustainability of low-cost carriers in India’s competitive aviation landscape.
