Go First Creditors Replace the Bankruptcy Officials | Latest News

Mumbai, June 12, 2023 - In a significant development, the creditors of Go First (G8) Airlines have taken decisive action by replacing the officials associated with the company's bankruptcy proceedings. This move clearly demonstrates their intention to assume complete control of the carrier's resolution process at the National Company Law Tribunal (NCLT).

According to a report by the Economic Times, the committee of creditors (CoC) of Go First Airlines made these changes during its recent meeting. The CoC has replaced the interim resolution professional (IRP), as well as the process advisor and legal agency that were previously appointed for the airline.

Go First voluntarily filed for insolvency under the Insolvency and Bankruptcy Code (IBC) and was subsequently granted bankruptcy protection by the NCLT. The Committee of Creditors (CoC) has appointed Shailendra Ajmera as the case resolution professional (RP), as reported by PTI.

Representatives from four banks, namely Bank of Baroda, Central Bank of India, IDBI, and Deutsche Bank, visited the Go First office and held a meeting on Friday. This meeting led to the establishment of the CoC, which will now review and develop a revival plan for the financially challenged airline. Once the plan receives approval, it will be submitted to the Directorate General of Civil Aviation (DGCA).

Earlier, Go First had presented a revival plan to the aviation regulator, outlining its intention to recommence operations with a fleet of 26 aircraft. The plan included 22 aircraft for active operations and 4 as reserves, along with a proposal for 152 daily flights.

During a recent media interaction, Jyotiraditya Scindia, the Minister of Civil Aviation, informed reporters that the DGCA has raised some inquiries regarding the flight resumption plan submitted by Go First. The airline is expected to respond to these queries, and upon receiving the DGCA's approval, the plan can proceed further.

"The aviation sector in India operates under a deregulated framework. Our role as regulators is to facilitate its growth," Scindia stated. "While discussing airlines like Go First and Jet Airways, it's important to acknowledge the success stories of new carriers like Akasa and small regional airlines. We hope to see more airlines emerge and contribute to the industry," he further emphasized.

Scindia also highlighted the current capacity constraints and advised airlines to review and rationalize their pricing strategies, closely monitoring their fare structures. He mentioned that certain cities have experienced higher fares, but there has been a recent decline in spot fares on these routes over the past two days.

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