- May 9, 2023
Go First Crisis: Report Reveals Tata And IndiGo Vying For Airline’s Aviation Assets
The two companies are also engaged in discussions with airport operators in New Delhi and Mumbai regarding landing and parking slot arrangements.
Tata Group and IndiGo are currently in separate negotiations with Go First’s lessors.
Indian multinational conglomerate Tata Group and airline company IndiGo are reportedly in discussions to acquire Airbus SE planes from Go First airline. The development comes days after the carrier filed for insolvency protection and was instructed to stop ticket sales.
Tata has acquired the formerly state-run Air India and is integrating its brands, including local ventures of Singapore Airlines Ltd and Capital A Bhd’s AirAsia.
According to CNBCTV18, which cited a Bloomberg report, sources familiar with the matter have revealed that the Tata Group and IndiGo are currently in separate negotiations with Go First’s lessors.
Additionally, the two companies are also engaged in discussions with airport operators in New Delhi and Mumbai regarding landing and parking slot arrangements.
Reportedly, it has been disclosed that Go First’s lessors are seeking to repossess 36 aircraft, which is evident from filings made with India’s aviation regulator.
According to the report, multiple other parties have also expressed their interest in acquiring the airport slots. One of the interested parties mentioned is Akasa Air, a recently established airline.
The high demand for Go First’s assets could potentially create hurdles for the airline’s debt restructuring plans and efforts to resume operations.
On Monday, May 8, DGCA instructed Go First to halt ticket sales, which is reminiscent of the similar action taken against Vijay Mallya’s Kingfisher Airlines about a decade ago.
The aviation regulator directed crisis-hit airlines to immediately stop bookings and sale of tickets directly or indirectly till further orders.
Besides, the watchdog has issued a show cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner, news agency PTI reported.
Earlier, the airline had suspended the sale of tickets till May 15 and had cancelled flights till May 12.
The carrier has filed a plea for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), which has reserved its order.
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