Go First Sale Attracts Strong Interest as Deadline for Expressions of Interest Closes

The deadline for potential buyers to submit Expressions of Interest (EOI) for India’s Go First (GOW) has concluded, with three prominent entities emerging as noteworthy contenders among the submissions. The low-cost carrier, which ceased operations in May, has garnered attention from both local and foreign interests, excluding participation from major carriers like IndiGo Airlines and Air India.

Go First’s resolution professional, Shailendra Ajmera, received multiple EOIs, highlighting a robust interest in the acquisition. A substantial local corporate entity and at least one foreign carrier are reportedly among the standouts, signaling potential revitalization for the airline. The sale process comes amid mounting pressure on Go First to restart operations, compounded by claims totaling USD2.9 billion from operational and financial creditors.

Despite a National Company Law Tribunal (NCLT) ruling permitting Go First to retain its leased Airbus narrowbodies, the airline faces challenges with unpaid salaries and a significant number of employee resignations. With approximately 3,000 personnel on record, only around 150 are pilots, underscoring the urgent need for a revival plan.

Recent changes to India’s aviation rules, aligning with the 2001 Cape Town Convention, pose additional threats to Go First’s recovery efforts. The amendments allow lessors to repossess and repatriate aircraft more easily after an airline becomes insolvent. Go First, which acquired all its aircraft from lessors, is currently navigating multiple NCLT hearings involving various lessors.

Several lessors, including Avenue Capital Group, BOC Aviation, CCB Financial Leasing, and others, have active matters before the NCLT related to Go First. The airline has filed an application for immediate resolution and revival of operations, with its latest update extending flight cancellations through October 8, 2023.

As Go First aims to resume operations and welcomes potential buyers, the aviation industry awaits developments in the ongoing efforts to revitalize this key player in the Indian market. Stay tuned for updates on Go First’s journey toward recovery and potential acquisition.