After many false starts, as with airlines that shut down in India, there might be a glimmer of hope for Go First, which shut operations on May 2, 2023. The airline’s Insolvency Process is ongoing, and one of the outcomes of the process is that there is interest in the airline to be taken over.
Jindal Power sends an Expression of Interest for Go First.
Since the airline shut in May 2023, blaming Pratt & Whitney GTF engines for their troubles and causing half their fleet to be grounded, the airline has been unable to restart operations, given the creditors (bankers) are hesitant to throw good money after bad, so far. Pratt & Whitney hasn’t given the airline to be hopeful for much, instead going through the legal process. The airline wanted to restart operations but hasn’t yet found the money to restart it.
Consequently, the resolution professional, whom the Committee of Creditors appoints to represent their interest and take over the airline’s operations, called for interest to be expressed for someone else to take over in whole or part. After two false starts, the airline, now defunct, has received an expression of interest. It received three, but two stand disqualified, and only one will proceed.
The EoI that is qualified is from Jindal Power Limited, which will now have a month to conduct a due diligence exercise through a virtual data room and then be able to bid for the airline. The insolvency resolution process is usually supposed to be completed in 180 days, but it seems like an extension might be needed in case this bid finds its feet.
However, the big deal here is that the airline is still in court regarding its fleet plans, where a new directive from the government of India has made it okay for lessors to take their aircraft away if an airline declares insolvency. About 45 aircraft that Go First leased are currently in this process, and lessors want their engines and planes on lease to Go First back so that they can depute these on another lease.
Bottomline
There is at least one qualified expression of Interest for Go First from Jindal Power Limited. Whether this will mean a successful bid, a restart of the airline, and customers whose flights were cancelled to be repaid their dues remains to be seen.
What do you make of the EoI from Jindal Power for Go First?
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