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

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

Reports point out that 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. They are also discussing landing and parking slots with airport operators including in New Delhi and Mumbai. 

New airline Akasa Air along with several other parties have also expressed interest in the airport slots. 

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

Go First’s attempts to revive its operations appear to be complicated with the rush for the airline’s assets by different airlines. 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, the regulator during the hearing, 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 while also pointing out that lessors were terminating their contracts with Go First. 

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