Critical Sale Deadline Approaches for India’s Struggling Airline Go First as Insolvency Deepens

India’s budget airline Go First (GOW, Mumbai International) faces a crucial moment as its committee of creditors (CoC) has approved a final attempt to find a buyer. The financially troubled carrier has been struggling to attract a successful bid despite previous sales efforts. A banker familiar with the situation told Reuters that the CoC is giving another chance to potential suitors who previously showed interest in Go First to submit a firm bid.

Several parties have expressed interest in acquiring the insolvent airline, but none have progressed beyond preliminary stages. Among these, local competitor SpiceJet confirmed its interest but has not moved past the due diligence phase. Other entities that have shown initial interest without commitment include Sharjah’s Sky One, Africa-focused Safrik Investments, a consortium named Plan IT, and US-based NS Aviation.

The CoC has set a firm deadline of January 31 for a definitive offer. Should a suitable bid not materialize by this date, the committee may opt to liquidate the airline, marking a significant development in the carrier’s ongoing financial crisis. Go First ceased operations in May 2023 and has publicly acknowledged its substantial debts, amounting to over INR 62 billion rupees (approximately USD 745.8 million).

While Indian insolvency laws allow for extensions in the timeline to secure a buyer, the committee appears hesitant to pursue this route, given the lack of serious offers since Go First halted its services. This situation puts the airline at a critical juncture, with its future hanging in the balance as the deadline for its sale looms.