A Go First request seeks NCLT direction to restrain lessors, DGCA

Wadia group-owned airline seeks voluntary insolvency proceedings and the matter will be heard by NCLT Delhi bench on Thursday. All Go First flights have been cancelled for three days starting May 3.

As part of its petition to the NCLT, the budget airline has asked for relief from aircraft lessors taking recovery actions and the DGCA initiating adverse actions.

Another plea is that the DGCA, Airports Authority of India (AAI), and private airport operators should not cancel the company's departure and parking slots.

A higher pension contribution of 1.16% will be taken from employers' payouts A higher pension contribution of 1.16% will be taken from employers' payouts

A gold loan from CSB Bank shines CSB Bank shines with gold loans

Additionally, the airline wants fuel suppliers to continue supplying fuel for aircraft operations.

In a statement, Go First said the grounding of more than half its fleet was due to the non-supply of engines by Pratt & Whitney.

There are total liabilities of Rs 11,463 crore to all creditors, including a default of Rs 3,856 crore to operational creditors. According to the NCLT plea, aircraft lessors owe Rs 2,600 crore. At April 30, financial creditors had a debt exposure of Rs 6,521 crore.

Last fiscal, the airline's net loss increased to Rs 3,600 crore from Rs 1,807.8 crore. In 2020-21, the net loss was Rs 1,346.72 crore.

Moreover, Go First cited Jet Airways as an example of lessors repossessing planes swiftly, causing its assets to depreciate rapidly.

Prior to insolvency, Jet Airways had a fleet of 112 aircraft, the Wadia group firm said.

Jet Airways had only 11 aircraft after its insolvency was triggered, which negatively affected its chances of resolving under IBC.

Under the Insolvency and Bankruptcy Code (IBC), CIRP stands for Corporate Insolvency Resolution Process. Go First has a domestic market share of around 8 per cent.

If Go First isn't resolved, Air India, AirAsia and SpiceJet will further monopolise the market, losing consumers and all stakeholders in the process.