On Monday, Go Airlines (India) requested the National Company Law Tribunal (NCLT) to expedite its insolvency plea, citing lessors’ attempts to repossess planes. This move comes less than a week after the airline filed for bankruptcy, citing “faulty” Pratt & Whitney engines as the reason for grounding half of its fleet.
Go Airlines (India), commonly known as GoAir, has been struggling financially for months, like many other airlines worldwide, due to the COVID-19 pandemic’s impact on the aviation industry. In recent months, the airline has reportedly been unable to pay salaries and dues to lessors and vendors, leading to numerous lease termination notices and the grounding of its planes.
Last week, GoAir filed a petition for insolvency with the NCLT, seeking a moratorium on all pending dues, including lease rentals, salaries, and other payments. The airline’s application will be heard by the NCLT on June 18. However, GoAir requested an urgent order from the NCLT, citing lessors’ attempts to take back their planes.
As per the airline’s submission to the NCLT, GoAir has leased 38 planes, out of which 17 are currently grounded due to engine issues, resulting in a significant reduction in revenue. The airline stated that it was in talks with lessors to resolve the issue and that the grounding of planes was beyond its control.
GoAir’s financial troubles have been exacerbated by engine issues with its Airbus A320neo planes. The airline had initially grounded some of its aircraft due to engine problems and had to return some planes to lessors due to its inability to pay rent. Pratt & Whitney, the engine manufacturer, has reportedly been providing replacement engines for the planes, but GoAir claims that the engines are not adequate and continue to fail.
The airline’s decision to file for bankruptcy has been met with mixed reactions. While some experts believe it was the only option left for the airline, others have expressed concern about the airline’s future and the impact on the Indian aviation industry.If the NCLT grants GoAir’s request for an urgent order, it could provide some relief to the airline and prevent further lease terminations. However, it remains to be seen whether GoAir can overcome its financial difficulties and re-establish itself as a profitable airline in the long run.
The COVID-19 pandemic has caused significant disruption in the aviation industry worldwide, with many airlines struggling to survive. Governments and aviation authorities have provided financial support and other measures to help airlines weather the storm, but the situation remains challenging. In India, the aviation industry is slowly recovering, but it will take time for airlines to return to pre-pandemic levels of business. In such a scenario, the future of GoAir and other airlines facing financial difficulties remains uncertain.