Tata, IndiGo in talks with lessors, airport operators for Go First’s assets: Report

Tata Group and IndiGo are reportedly in talks to take Airbus SE planes from Go First that had filed for voluntary insolvency proceedings last week. The Directorate General of Civil Aviation had asked the beleaguered airline to stop selling tickets with immediate effect, after the airline cancelled all tickets till May 12. 

According to a report in Bloomberg, the Tata conglomerate that owns Air India, Vistara and AirAsia India and one of India’s largest airlines, IndiGo, are holding separate negotiations with Go First’s lessors, and are also discussing landing and parking slots with airport operators including in New Delhi and Mumbai. 

Several other parties, including new airline Akasa Air, have also expressed interest in the airport slots, the report stated.

This comes after Go First’s lessors seek to repossess 36 aircraft. 

The rush for the airline’s assets might make Go First’s attempts to revive its operations complicated. In its plea with National Company Law Tribunal, the airline sought the tribunal’s intervention and restraining lessors from taking back their aircraft. 

Go First also sought the tribunal’s intervention in restraining DGCA from taking any adverse action against the airline. However, during the hearing, the regulator had asked Go First to refund the money to the impacted passengers. Following this, the DGCA asked the airline to stop selling tickets with immediate effect till further orders. 

In its plea with the NCLT, the airline said that the purpose of the Insolvency and Bankruptcy Code is to revive the airline. It said that it sees a huge scope in the revival of the airline but also pointed out that lessors were terminating their contracts with Go First.

The airline asked for an interim moratorium and the appointment of a resolution professional. However, NCLT stated that there is no provision of interim moratorium under IBC. 

NCLT that had reserved its decision following the plea, is expected to pronounce its decision on Wednesday. 

Go First blamed engine-maker Pratt & Whitney for its situation. It said that due to faulty engines, the airline had to ground nearly half of its fleet, which impacted its revenues and increased its losses. Go First CEO Kaushik Khona said in an interview that the airline is seeking $1 billion in damages from the engine-maker. 

Also read: Go First fallout: Passengers may end up paying higher fares to cover up for steep rise in Indian carriers’ overhead costs

Also read: Go First says it had stopped ticket bookings before DGCA order