The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of Go First, the budget airline that halted operations nearly two years ago due to financial difficulties. In a 15-page order, the tribunal mandated the liquidation of Go Airlines (India) Ltd, following its voluntary insolvency resolution process filed in May 2023. The NCLT highlighted that the Committee of Creditors (CoC) has the authority to decide on liquidation after its constitution and before confirming a resolution plan. This decision comes shortly after the Supreme Court ordered the liquidation of Jet Airways in November 2024, marking another significant setback for India’s aviation sector.
Go First owes Rs 6,521 crore to various lenders, including Rs 1,987 crore to Central Bank of India, Rs 1,430 crore to Bank of Baroda, Rs 1,320 crore to Deutsche Bank, and Rs 58 crore to IDBI Bank. Additionally, the airline’s liabilities include Rs 2,000 crore to aircraft lessors, Rs 1,000 crore to vendors, Rs 600 crore to travel agents, Rs 500 crore to customers for pending refunds, and Rs 1,292 crore borrowed under the Centre’s emergency credit scheme during the COVID-19 crisis. In total, its liabilities amount to approximately Rs 11,000 crore.
The airline’s remaining assets include a 94-acre land parcel in Thane, valued at around Rs 3,000 crore, pledged as collateral by the Wadia Group, along with an Airbus training facility in Mumbai and its headquarters. Once a prominent player in the ultra-low-cost airline segment, Go First ceased operations on May 2, 2023, and its insolvency plea was admitted by the NCLT shortly thereafter. The liquidation marks the end of Go First’s operations, leaving creditors, employees, and customers with unresolved challenges and reflecting the ongoing financial instability in India’s aviation sector.
