India’s domestic aviation sector is caught between a strong headwind and a course-changing crosswind. Already reeling under high fares on key domestic routes as a result of Go First cancelling a major bulk of its flights, it has to now contend with the legal spat involving the ultra-low-cost airline and the National Company Law Tribunal (NCLT) on one hand, and the airline’s lesser and creditors on the other, which threatens to have a long-term fallout for the sector as a whole.
The Story Thus Far
The troubles of the Wadia Group promoted Go First came to light on May 2 when it filed for voluntary insolvency proceedings before the NCLT and starting cancelling flights beginning May 3. In its plea, Go First blamed Pratt & Whitney (P&W) for ‘faulty’ engines as the reason why nearly half its 54 Airbus A320neos had to grounded. P&W, a part of Raytheon Technologies, has dismissed the airline’s claims as baseless.
Admitting Go First’s plea on May 10, the NCLT in an interim order granted relief to the airline, imposing a moratorium on the airline’s financial obligations. This meant that the lessors of Go First would not be able to take possession of the aircraft which are on lease.
Expectedly, lessors have vehemently opposed the NCLT’s interim order as they seek to repossess their planes. In fact, at least three aircraft lessors have challenged the insolvency. They have sought to re-possess aircraft and export or re-lease the planes to other functional airline operators. The protection granted to Go First has also sparked international ire.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences