Go First (Mumbai International) plans to resume flights by May 24 using 23 aircraft after abruptly suspending operations on May 2 due to a cash-flow crisis. The airline, now under bankruptcy protection, has cancelled all scheduled services until at least May 19. Lessors, now owed over USD92 million, are prevented from repossessing their aircraft.

Sources at Go First told India's Economic Times on May 11 about the May 24 target, whereby the airline would operate what it described as a "truncated schedule" from Delhi and Mumbai, where the carrier retains 51 and 37 daily departure slots, respectively. The operating fleet would be scaled back from 27 aircraft to 23 aircraft.

According to ch-aviation fleets data, Go First has 54 aircraft in its fleet, including five A320-200s and forty-nine A320-200Ns. However, before operations ceased, up to 40 of the aircraft were grounded due to persistent problems with their Pratt & Whitney engines. When Go First filed for insolvency in early May, it blamed the manufacturer's "defective and failing engines" and sued Pratt & Whitney for USD977 million in compensation, saying it had "repeatedly failed to meet” previous assurances given about to the engines.

Meanwhile, the Delhi bench of the National Company Law Tribunal (NCLT) agreed on May 10 to accept Go First's application for bankruptcy protection, preventing lessors from repossessing their aircraft. Go First CEO Kaushik Khona said oversight by the NCLT stopped "a viable airline from becoming an unviable one." Reportedly, it is the first time an India-based airline has voluntarily sought bankruptcy protection. It is believed lessors have applied to recover approximately 40 aircraft since Go First paused flights. The carrier almost exclusively relies on leased aircraft, with the ch-aviation fleets ownership module showing at least 52 aircraft are leased from 12 lessors.

In their May 10 decision allowing bankruptcy protection, the NCLT noted Go First began defaulting on payments owed to vendors and lessors despite been aware payment was due. As of April 28, 2023, Go First owed USD92,228.093.51 to nine aircraft lessors, including

  • USD1,094,900.10 to DAE Ireland Ltd;
  • USD56,658,326.40 to SMBC Aviation Capital;
  • USD3,159,310.88 to Banas Aviation Leasing Ltd;
  • USD3,354, 227.50 to GAL MSN;
  • USD6,055,964.48 to Yamuna Aviation Leasing Ltd;
  • USD7,292,101.98 to Narmarda Aviation Leasing Ltd;
  • USD11,131,586.50 to Minsheng Commercial Aviation (Ireland) Company Ltd;
  • USD883,178.47 to Pembroke Aircraft Leasing; and
  • USD2,598,497.20 to AerCap.

A provisional statement provided to the NCLT showed that, as of April 28, Go First's lease liabilities were USD310,580,638. Neeraj Kishan Kaul, appearing before the NCLT for Go First, said the airline had filed an emergency arbitration application against Pratt & Whitney before the Singapore International Arbitration Centre (SIAC) in early April, and succeeded in obtaining orders that directed Pratt & Whitney to supply ten serviceable engines by April 27 and ten serviceable engines every month thereafter until December. However, Pratt & Whitney has failed to comply with the orders. As of April 28, Go First owed its creditors INR65.21 billion Indian rupees (USD793.6 million). Kaul pointed out that unless the NCLT extended bankruptcy protection to the carrier, it would lose all of its aircraft assets and not be able to restart.

Several lessors, notably SMBC Aviation Capital, unsuccessfully argued against granting Go First bankruptcy protection. However, SMBC is appealing the NCLT's decision. "Lessors and international aircraft owners see India as a risky jurisdiction for aircraft leasing," counsel for the lessor told the NCLT on Wednesday, per a Reuters report. "The admission of the petition (seeking protection) will further shake confidence of the international aviation industry." SMBC's counsel called the airline's bid for bankruptcy protection a "smokescreen."

The National Company Law Appellate Tribunal (NCLAT) in Delhi will hear SMBC's appeal against the bankruptcy protection decision on Friday, May 12.