Go first bankruptcy | crisis in the sky

GoFirst’s difficulties bring to the fore the vulnerability of the Indian aviation industry in the face of intense competition and high operating costs. Experts fear more casualties in the region

Grounded Wings: First aircraft to land at IGI Airport in New Delhi on May 3. (Photo: ANI)

TeaThe May 2 decision of Go First, India’s third-largest carrier, to suspend flights for two days – later extended till May 19 – caught fliers, the aviation regulator and the Center completely off guard. It also took steps to file for voluntary insolvency proceedings before the Mumbai bench of the National Company Law Tribunal (NCLT). The company cited long delays in sourcing airworthy engines from US aerospace major Pratt & Whitney as the reason behind the bankruptcy decision, but experts say the real issues go beyond engine troubles, and point to financial problems at the airline. Are. and systemic issues in Indian aviation that will see most airlines going through a turbulent phase in the coming days. Aviation consulting firm CAPA Advisory says Indian airlines have reported losses of around $17 billion (Rs 1.4 lakh crore) since FY10. On 10 May, the NCLT accepted GoFirst’s plea, offering protection against immediate attachment of its properties by the company’s lessors and lenders.