Go First's Insolvency Plea: NCLT To Pass Order On Cash-Strapped Airline On Wednesday

The two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta would pronounce the order. Go First is seeking an interim moratorium on its financial obligations.

The NCLT reserved its order on May 4, after hearing arguments from the Wadia group-owned airline and its aircraft lessors, who have contested a petition seeking interim protection.

Source : Instagram@gofirstairways

The National Company Law Tribunal (NCLT) will give an order on the Go First airline insolvency plea on Wednesday, according to a notice on the tribunal's website on Tuesday. The airline filed for bankruptcy protection last week blaming Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neo planes.

The two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta would pronounce the order. Go First is seeking an interim moratorium on its financial obligations.

The NCLT reserved its order on May 4, after hearing arguments from the Wadia group-owned airline and its aircraft lessors, who have contested a petition seeking interim protection.

Go First, which has been flying for more than 17 years, stopped flights on May 3 amid a financial crunch caused by the grounding of more than half of its fleet due to the non-availability of Pratt & Whitney engines.

The airline has liabilities worth Rs 11,463 crore. The airline has sought voluntary insolvency resolution proceedings. Go First has also requested an interim moratorium on its financial obligations.

On Tuesday, additional lessors of Go First requested the DGCA to de-register at least three of the airline's aircraft, as per notices on the regulator's website. This follows a similar request made by leasing companies such as Sky High XCV Leasing Company, ACG Aircraft Leasing, and SFV Aircraft Holdings on Monday, asking for the return of at least 13 planes, as per the notices.

The Directorate General of Civil Aviation (DGCA) has asked crisis-hit GoFirst to stop selling any more air tickets with immediate effect until further orders. The aviation regulator has issued a show cause notice to the airline for their failure to continue operations in a safe, efficient, and reliable manner and asked why its licence should not be revoked in view of its failure to operate flights.

Meanwhile, a Go First spokesperson has said that the airline stopped ticket booking before the DGCA notice.