Indian airlines bankruptcies

The move marks the first major airline collapse in India since Jet Airways filed for bankruptcy in 2019, and underscores the fierce competition in a sector dominated by IndiGo and the recent merger of Air India and Vistara under the Tata conglomerate. Go First's total debt to financial creditors was 65.21 billion rupees as of April 28, it said in a bankruptcy filing with the National Company Law Tribunal. The company had not defaulted on any of those dues as of April 30, but had defaulted on payments to operational creditors, including 12.02 billion rupees to vendors and 26.60 billion rupees to aircraft lessors, it said in the filing. In a statement, Go First said its filing followed a refusal by Pratt & Whitney, the exclusive engine supplier for the airline's Airbus A320neo aircraft fleet, to comply with an arbitration order to release spare leased engines that would have allowed the airline to return to full operations. Grounded aircraft "due to Pratt & Whitney's faulty engines" ballooned from 7% of its fleet in December 2019 to 50% in December 2022, the airline said, costing it 108 billion rupees ($1.32 billion) in lost revenues and additional expenses. Pratt & Whitney said in a statement to Reuters that it was "committed to the success of our airline customers, and we continue to prioritize delivery schedules for all customers." "P&W is complying with the March 2023 arbitration ruling related to Go First. As this is now a matter of litigation, we will not comment furth...

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BENGALURU, May 8 (Reuters) - Go Airlines on Monday called on India's company law tribunal to urgently grant its request for bankruptcy protection, as more lessors sought to repossess planes and the country's aviation regulator told the carrier to stop selling new tickets. The airline, widely known as Go First, filed for bankruptcy protection last week, blaming "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus While the National Company Law Tribunal heard Go First's bankruptcy plea last week, it has yet to pass an order. This has given lessors a window to try to secure their assets. On Monday, leasing companies Sky High XCV Leasing Company, ACG Aircraft Leasing, SFV Aircraft Holdings and some others submitted requests to India's aviation regulator to take back at least 13 planes, according to regulatory notices. In all, a total of 33 requests have now been made by lessors including GY Aviation Lease and SMBC Aviation Capital. Lawyers representing cash-strapped Go First said at Monday's court hearing the lessors' actions could further impair its operations. Separately, the regulator ordered Go First to stop selling new tickets, a government source with direct knowledge of the matter said. A spokesperson for the airline said it would respond to the regulator's order in due course. Pratt & Whitney, part of Raytheon Technologies Go First failed because of "its own poor management and events like COVID", Pratt said, according to legal documents. The ...

By India Today Business Desk: Beleaguered low-cost airline Go First’s creditors have taken full control of the ongoing resolution process after its bankruptcy plea was approved by the National Company Law Tribunal (NCLT). The committee of creditors (CoC) has replaced key bankruptcy professionals, who were appointed by the airline early, to take the process forward, reported The Economic Times. In a meeting held Friday, the CoC replaced the company-appointed interim resolution professional (IRP), process advisor and legal agency and took over control of the process, added the report. Also Read | It also suggested that Trilegal, the IRP’s legal advisor, will also be replaced; firms such as Shroff & Co, Luthra & Luthra and Cyril Amarchand Mangaldas are in contention. A person familiar with the process told ET that lenders “were a bit apprehensive about continuing with the same support firms appointed by the company”. One of the reasons why the CoC is making these changes is to ensure no conflict of interest. Therefore, any advisor or firm that has served the promoters or the management previously is being replaced, said the report. It may be noted that cash-strapped Go First owns creditors led by the Central Bank of India more than Rs 6,500 crore. Go First's total dues The airline has faced multiple roadblocks since the initiation of insolvency proceedings. While it has managed to dodge a few bullets along the way, it remains in a precarious position financially and has also ...

Go Airlines India Ltd., which filed for bankruptcy protection in May, hopes to resume operations by the end of the month and restore 94% of its daily flights, a person familiar with the matter said. In a revival plan submitted to the aviation regulator, the airline said it can operate 157 daily flights domestically, compared with the 167 it flew previously, the person said, asking not to be identified because the matter is private. The carrier abruptly halted flights last month, blaming problems with the Pratt & Whitney engines that power its fleet.

(Updates with challenge of bankruptcy order by lessor in paragraphs 1 and 11) By Arpan Chaturvedi, Aditi Shah and Aditya Kalra NEW DELHI, May 10 (Reuters) - Go Airlines (India) Ltd was granted bankruptcy protection on Wednesday, bolstering the country's fourth largest carrier's chances of getting back on its feet, but lessors have started mounting legal challenges to repossess planes. The low-cost carrier, recently rebranded as Go First, was plunged into financial crisis this year, sparked by what it called "faulty" Pratt & Whitney engines that grounded about half its 54 Airbus A320neos. The U.S. engine maker, part of Raytheon Technologies , in a statement said Go First's allegations were "without merit". In granting bankruptcy protection, the National Company Law Tribunal in New Delhi ordered a moratorium on Go First's assets and leases and appointed Abhilash Lal of Alvarez & Marsal as the interim resolution professional to take over management with immediate effect. The resolution professional "shall ensure that retrenchment of employees is not resorted to as a matter of course", the tribunal's 41-page order said. Go First has a staff of around 7,000. The bankruptcy move adds to headaches for lessors, which have filed requests with India's aviation regulator for the return of about 40 Go First planes after rental payments were missed. India made it easier for lessors to take back planes if airlines default on payments after joining an international treaty known as the Ca...

Go Airlines India Ltd., which filed for bankruptcy protection in May, hopes to resume operations by the end of the month and restore 94% of its daily flights, a person familiar with the matter said. In a revival plan submitted to the aviation regulator, the airline said it can operate 157 daily flights domestically, compared with the 167 it flew previously, the person said, asking not to be identified because the matter is private. The carrier abruptly halted flights last month, blaming problems with the Pratt & Whitney engines that power its fleet.

By India Today Business Desk: Beleaguered low-cost airline Go First’s creditors have taken full control of the ongoing resolution process after its bankruptcy plea was approved by the National Company Law Tribunal (NCLT). The committee of creditors (CoC) has replaced key bankruptcy professionals, who were appointed by the airline early, to take the process forward, reported The Economic Times. In a meeting held Friday, the CoC replaced the company-appointed interim resolution professional (IRP), process advisor and legal agency and took over control of the process, added the report. Also Read | It also suggested that Trilegal, the IRP’s legal advisor, will also be replaced; firms such as Shroff & Co, Luthra & Luthra and Cyril Amarchand Mangaldas are in contention. A person familiar with the process told ET that lenders “were a bit apprehensive about continuing with the same support firms appointed by the company”. One of the reasons why the CoC is making these changes is to ensure no conflict of interest. Therefore, any advisor or firm that has served the promoters or the management previously is being replaced, said the report. It may be noted that cash-strapped Go First owns creditors led by the Central Bank of India more than Rs 6,500 crore. Go First's total dues The airline has faced multiple roadblocks since the initiation of insolvency proceedings. While it has managed to dodge a few bullets along the way, it remains in a precarious position financially and has also ...

BENGALURU, May 8 (Reuters) - Go Airlines on Monday called on India's company law tribunal to urgently grant its request for bankruptcy protection, as more lessors sought to repossess planes and the country's aviation regulator told the carrier to stop selling new tickets. The airline, widely known as Go First, filed for bankruptcy protection last week, blaming "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus While the National Company Law Tribunal heard Go First's bankruptcy plea last week, it has yet to pass an order. This has given lessors a window to try to secure their assets. On Monday, leasing companies Sky High XCV Leasing Company, ACG Aircraft Leasing, SFV Aircraft Holdings and some others submitted requests to India's aviation regulator to take back at least 13 planes, according to regulatory notices. In all, a total of 33 requests have now been made by lessors including GY Aviation Lease and SMBC Aviation Capital. Lawyers representing cash-strapped Go First said at Monday's court hearing the lessors' actions could further impair its operations. Separately, the regulator ordered Go First to stop selling new tickets, a government source with direct knowledge of the matter said. A spokesperson for the airline said it would respond to the regulator's order in due course. Pratt & Whitney, part of Raytheon Technologies Go First failed because of "its own poor management and events like COVID", Pratt said, according to legal documents. The ...

• Opinion • Leaders • Letters to the editor • By Invitation • Current topics • War in Ukraine • Climate change • Coronavirus • The Biden presidency • Recession watch • The Economist explains • Current topics • War in Ukraine • Climate change • Coronavirus • The Biden presidency • Recession watch • The Economist explains • World • The world this week • China • United States • Europe • Britain • Middle East & Africa • Asia • The Americas • International • In depth • Science & technology • Graphic detail • Special reports • Technology Quarterly • The World Ahead • Briefing • Essay • Schools brief • Business & economics • Finance & economics • Business • Big Mac index • A-Z of economics • Economic & financial indicators • Culture & society • 1843 magazine • Culture • Obituary • The Economist reads • Summer reads • Christmas Specials • More • Podcasts • Newsletters • Films • The Economist app • Subscriber events • Online courses G O FIRST, an Indian low-cost airline, collapsed in May under the weight of four years of losses, citations for safety lapses and operating confusion that, in January, resulted in a flight from Bangalore to Delhi carrying baggage but forgetting a third of its passengers. At least the carrier held valuable assets in the form of 45 or so aircraft stranded at Indian airports. And, as a high-priority case, it was supposedly subject to expedited bankruptcy hearings. A prompt liquidation and redeployment of assets has obvious benefits for the aviation industr...