Indian carriers IndiGo and Tata prepare to buy Go Air's aviation assets

Tata Group and IndiGo are in separate negotiations with Go Air's lessors, as well as with airport operators in New Delhi and Mumbai, according to people familiar with the matter.

A Go Airlines Ltd. aircraft stands at Terminal 3 of the Indira Gandhi International Airport in New Delhi, India, on Sunday, June 28, 2020. Airlines in India have been restricted on fares and capacity deployed since May 25, making their viability more difficult at a time when the industry is expected to take a long time to recover.

In addition to negotiations with Go Air's lessors, Tata Group and IndiGo are seeking landing and parking slots at airports, including in Mumbai and New Delhi. Lessors of Go Air are seeking repossession of 36 aircraft, filings with India's aviation regulator show.

A number of other parties have expressed interest in the airport slots, the people said, declining to be identified because the discussions are confidential. Among them is Akasa Air, one person said.

Go Air's debt restructuring and restarting operations may be complicated by the clamor for its assets. Similarly, fugitive billionaire Vijay Mallya's Kingfisher Airlines Ltd. was forced to stop selling tickets by the Indian aviation regulator about a decade ago. After that, it never flew again. Go Air's operating license will be decided in two weeks.