Summary
- Multiple big entities, including a foreign airline, have shown interest in bidding for the revival of Go First, despite its ongoing difficulties.
- The airline has faced significant challenges, including disputes with lessors and the departure of employees due to unpaid salaries.
- With the deadline for expressions of interest now closed, the committee of creditors will assess the applications received in the coming days.
Even as Go First’s flight resumption plan seemingly remains on critical life support, “multiple” entities have shown interest in its revival. And according to the latest report, a foreign airline is among those interested in getting the carrier up and running again.
Multiple expressions of interest
After extending the deadline several times for inviting bids for its revival, Go First reportedly has some offers from big entities interested in bidding. According to a Times of India (TOI) report, three big entities have come forward with expressions of interest (EoI), which also includes a foreign airline.
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Many were hoping that big Indian carriers such as Air India and IndiGo would also show interest, but that has reportedly not been the case. TOI quotes people aware of the development as saying,
“Saturday (Oct 7) was the last day for seeing expression of interest. This time some reasonably strong players have shown interest. So there is a ray of hope that Go First may fly again, though a shadow of its former old self. We were hoping that either IndiGo or Air India also show interest in Go but they are not likely to have participated. But at least one foreign airline has shown interest now.”
Indeed, the airline has found it difficult to elicit any significant response from potential investors, given the scope of its problems. Finally, with some major entities coming forward, the committee of creditors will assess their applications in the coming days.
Recent issues
The months following Go First’s grounding have been rather tricky for the airline. Its relationship with its lessors, in particular, has been in the news in the last couple of months. Go First’s lessors have voiced concerns over Indian authorities not following global conventions in returning leased aircraft following the carrier’s bankruptcy.
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Recent reports of leasing companies finding aircraft parts missing and sub-par maintenance have only added to the dispute. All of this has also affected India’s reputation for leasing aircraft, with UK-based Aviation Working Group, which observes leasing laws globally, downgrading the country’s rating.
Then there’s the issue of retaining its employees. A significant chunk of Go First’s employees has left to look for opportunities with other airlines, particularly Air India and IndiGo. The airline is finding it increasingly difficult to keep the reaming of its workers, including pilots, due to its inability to pay timely salaries.
Five months since grounding
It’s been a little over five months since Go First suspended operations. The airline has been granted a moratorium as a temporary solution, but time is running out soon. India is also working to change bankruptcy rules to exclude leased aircraft from a moratorium.
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Indeed, if the past is any indication, the fates of Kingfisher Airlines and Jet Airways tell us something – that it’s incredibly difficult to revive a dead carrier. Go First is trying hard to prove that theory wrong.
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Source: The Times of India