NCLT orders liquidation of Go First, ending 20-month insolvency saga

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Subscribe to enjoy similar stories. The National Company Law Tribunal (NCLT) has ordered the liquidation of Go First, marking the end of 20 months of insolvency proceedings for the struggling budget airline. Go First, which filed for bankruptcy in May 2023, had a 6.9% market share in India’s aviation sector at the time.

However, the airline’s assets were effectively wiped out after the Delhi High Court allowed lessors to repossess its fleet of 54 planes. While GoFirst is the second major airline to get grounded in the last 6 years, along with Jet Airways, there is likely no major impact on sentiments for the sector. India's aviation growth story remains intact on the back of robust domestic demand and expansion by players like Air India, Indigo, and Akasa.

Indian airlines have over 1500 aircraft on order, and the sector is set to grow. Experts believe the government needs to ensure the working environment for the sector is healthy, with ATF (Aviation Turbine Fuel) brought under GST. CEO of Avialaz Consultants Sanjay Lazar told Mint, "The closure of GoFirst has put a slight dampener on the aviation market in India, which has become a duopoly.

However, there is ample interest from foreign investors in the Indian aviation sector, given necessary protections. There should be a more amiable environment for airlines that can then flourish and pass on the benefits to passengers." Lazar added that India is a huge aviation market and there is still a great opportunity for at least one more full-service carrier (FSC) and two ultra-low-cost carriers (ULCC). He also stressed, "The government must bring ATF under a uniform GST and rationalize taxes and levies for airlines.