Go First heads for liquidation: NCLT closes curtains on 20-month insolvency saga

The National Company Law Tribunal (NCLT) has reportedly ordered the liquidation of Go First, bringing the airline's 20-month-long insolvency proceedings to a close.

An NCLT bench, comprising judicial member Mahendra Khandelwal and technical member Sanjeev Ranjan, approved the Committee of Creditors' (CoC) application to liquidate Go First, according to media reports. Fortune India has reached out to Go First for confirmation, and the story will be updated upon receiving a response.

When did the airline's troubles begin?

The airline's troubles began in May 2023, when its former promoter, the Wadia Group, filed for voluntary bankruptcy under Section 10 of the Insolvency and Bankruptcy Code (IBC). The filing cited delays in securing engines from Pratt & Whitney. Go First suspended operations the same month. Shortly thereafter, the NCLT admitted the bankruptcy plea and appointed a Resolution Professional (RP) to oversee the airline’s operations.

Meanwhile, the airline’s lessors approached the Delhi High Court, urging the Directorate General of Civil Aviation (DGCA) to deregister their aircraft. However, in December 2023, the DGCA informed the court through an affidavit that it would postpone deregistration due to ongoing legal proceedings. In April 2024, the Delhi High Court directed the DGCA to proceed with deregistering Go First's fleet.

During the bankruptcy process, the airline received two financial bids, with one bidder increasing its offer following encouragement from lenders. Despite this, the CoC rejected the bids in August 2024, determining that the airline had no feasible path to revival due to a lack of operational aircraft and resources. In September 2024, the CoC formally decided to liquidate Go First and filed an application with the NCLT.

At its peak, Go First operated a fleet of 54 aircraft and held a 6.9% share of India’s aviation market. By December 2024, lessors had repossessed 28 aircraft, with more than half of the fleet deregistered and moved out of India.

Aside from Go First, Kingfisher Airlines was liquidated over eight years ago after its license was suspended in 2012, while the Supreme Court ordered Jet Airways' liquidation under the IBC in November last year.