Go First’s woes mount as govt decides to re-allocate its Hajj flights

GoFirst is scheduled to operate the Hajj flights from 10 embarkation points in different parts of the country. However, a senior official told the news agency that its flights would be reallocated to IndiGo and two Saudi Arabian airlines – Saudia and Flyadeal.

Go First has moved a plea for voluntary insolvency resolution proceedings in the National Company Law Tribunal (NCLT). The tribunal has appointed an interim resolution professional to manage the affairs of the budget airline under the Insolvency and Bankruptcy Code (IBC).

For this year’s Hajj pilgrimage, there will be a total of 22 embarkation points. Out of these, Go First was to operate from 10 embarkation points, SpiceJet from 4 points, Saudia from 2 points, Air India, Air India Express, and Vistara from 2 points each, the official told PTI.

But uncertainty remains over the future of Go First as some lessors have challenged the tribunal’s ruling.

Flights for Hajj pilgrims will commence later this month and will be on till the second week of July. For this year, a quota of 1,75,025 Hajj pilgrims has been allotted to India. The annual pilgrimage will take place around June-end.

Earlier today, two aircraft lessors — GY Aviation and SFV Aircraft Holding — moved the appellate tribunal NCLAT against the order passed by the NCLT allowing Go First’s insolvency proceedings.

SMBC Aviation Capital, which is one of the world’s largest aircraft leasing companies, already moved NCLAT on Wednesday. Ireland-based GY Aviation is the largest lessor of Go First with 9 aircraft, while SFV Aircraft Holdings has leased out one aircraft. SMBC Aviation Capital has 5 aircraft on lease with Go First.

On Wednesday, the NCLT admitted the airline’s plea for voluntary insolvency resolution proceedings and imposed a moratorium on its financial obligations that bar lessors from taking back aircraft.