Tata Group and IndiGo are in talks to take Airbus SE planes from Go Airlines after the airline filed for insolvency protection and was ordered to stop selling tickets, Bloomberg reported.
According to the sources of the news agency, the two companies are holding separate negotiations with Go Air’s lessors, as well as discussing landing and parking slots with airport operators, including in New Delhi and Mumbai. Go Air’s lessors are seeking to repossess 36 aircraft, filings with the DGCA reveal. The sources privy to the development told Bloomberg that several other parties have also expressed interest in the airport slots. New carrier Akasa Air is also among them, one of the sources said.
The clamor for Go Air’s assets may complicate its bid to restructure debt and restart operations. India’s aviation regulator told the carrier to stop selling tickets on Monday, reminiscent of when fugitive billionaire Vijay Mallya’s Kingfisher Airlines Ltd. was ordered to do the same about a decade ago. It never flew again. A decision is due in two weeks on whether Go Air can keep its operating license.
Go Air’s biggest lessors include Sky High XCV Leasing Ltd., ACG Aircraft Leasing Ireland Ltd. and SMBC Aviation Capital Ltd.
On Wednesday, the National Company Law Tribunal (NCLT) in its order on Wednesday admitted Go First's voluntary plea to initiate insolvency resolution proceedings. A two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta appointed Abhliash Lal as interim resolution professional (IRP) to run the debt-ridden firm.
The bench has also put the company under protection of moratorium and directed the suspended board of directors to assist the IRP to run the company during insolvency proceedings. Besides, the NCLT also ordered to keep the company as a going concern and ensure that no employee are retrenched.
Founded in 2005 by Nusli Wadia, Go Air has said Pratt & Whitney engines on its A320neo aircraft deteriorated faster than expected and prematurely stopped working. The airline said it had to change more than 500 Pratt GTF engines between 2016 and February 2023, forcing planes out of service and leading to losses of Rs 108 billion ($1.3 billion).