NCLT orders the liquidation of Go First | Company Business News-OxBig News Network

The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of Go First, concluding the 20-month-long insolvency proceedings against the budget airline. 

The debt-laden airline landed in the bankruptcy court in May 2023. The airline held a 6.9% market share in India’s aviation sector at the time but was left with no viable assets after the Delhi high court allowed lessors to repossess its fleet of 54 planes.

In its 26 April order, the Delhi high court ordered the Directorate General of Civil Aviation (DGCA) to deregister all the airline’s leased planes following a plea from several lessors who sought to reclaim their assets.

The order left the airline without planes, prompting the interested buyer, a consortium involving SpiceJet’s Ajay Singh and EaseMyTrip’s Nishant Pitti, to retract their bid.

Go First’s financial troubles had begun when its former promoter, the Wadia Group, filed for voluntary bankruptcy, citing delays in securing engines from Pratt & Whitney. 

Go First joins Jet Airways as the second major airline to be liquidated under India’s insolvency process. The Supreme Court ordered Jet Airways’ liquidation in November 2024 after its resolution plan was found unworkable. 

Go First, however, filed for liquidation in September 2023, citing the absence of viable assets and a feasible revival plan.

Go First owes approximately ₹6,200 crore to its creditors, with significant claims from the Central Bank of India ( ₹1,934 crore), Bank of Baroda ( ₹1,744 crore), and IDBI Bank ( ₹75 crore).