Go First Files A Insolvency: TATA and Indigo In RaceMay 10, 2023 22:52
(Image source from: News18.com)
Go First Files A Insolvency: TATA and Indigo In Race:- Go First was established by Nusli Wadia in 2005. After Pratt & Whitney engines were installed on A320 aircraft, there was a faster rate of premature failures, which resulted in the insolvency of the airlines. The company replaced 500 Pratt GTF engines from 2016 to 2023, which lead the losses for the company up to Rs 10,800 cr.
Currently, domestic carriers are in huge demand in India and there is a shortage of commercial jetliners as the travel rate has increased after the pandemic than expected. These situations are making the airlines compete to acquire Go Air airlines.
TATA has acquired Air India. As per statistics, Air India is carrying 60% of domestic travellers. Both Indigo and Air India are competing to buy Go Air and projected their offers to the Wadia Group. Akasa Air, which was started recently and Vistara is also showing interest on Go Air. In May, Indian Aviation instructed Go Air to stop selling tickets, a similar happened to Vijay Mallya’s Kingfisher a decade ago. But unfortunately, Kingfisher never resumed their operations again.
Go Air has filed a petition for voluntary insolvency before National Tribunal and the court is expected to pass an order today. Wadia's group is waiting for it, so it can take a deal from the airline's attractive offers. Currently, the bookings are suspended for Go Air flights.