The deadline has passed for potential buyers to lodge Expressions of Interest (EOI) for India's Go First (Mumbai International), with three "reasonably strong" entities among many reportedly doing so before the October 7, 2023, cut-off date.

The sale of the low-cost carrier, which ceased flying in May, is being handled by its resolution professional, Shailendra Ajmera, an insolvency expert and partner at Ernst & Young's Delhi office. According to a Times of India report, multiple EOIs were lodged, but the three standouts included a sizeable local corporate entity and at least one foreign carrier. Neither IndiGo Airlines (6E, Delhi International) nor Air India (AI, Delhi International) are believed to have participated in the process.

Ajmera has received claims totalling USD2.9 billion from Go First's operational and financial creditors as pressure mounts on the airline's management to restart the airline before it is too late. While a National Company Law Tribunal (NCLT) ruling has allowed Go First to retain its 54 leased Airbus narrowbodies, along with their engines, that ruling is soon set to expire. In addition, with salaries going unpaid, employees continue to resign in large numbers. The newspaper reports that Go First retains around 3,000 personnel, but only about 150 are pilots.

A decision last week by the Indian government to bring India's aviation rules in line with the 2001 Cape Town Convention further threatens Go First's restart. The changes to India's Insolvency and Bankruptcy Code (2016) mean that asset-freezing orders will not apply to aircraft frames and engines, making it easier for lessors to repossess and repatriate aircraft after an airline becomes insolvent. The impact of this change on Go First is yet to be ascertained but will likely feature in multiple upcoming NCLT hearings involving multiple lessors. Go First acquired all of its aircraft from lessors. According to ch-aviation fleets data, lessors include Avenue Capital Group, BOC Aviation, CCB Financial Leasing, CDB Leasing, DAE Capital, ICBC Financial Leasing, Jackson Square Aviation, Maverick Aviation Partnership, Merx Aviation Finance, Minsheng Financial Leasing, SKY Leasing, and SMBC Aviation Capital. Matters relating to lessors currently before the NCLT include:

  • DAE Ireland Designated Activity Company v. Go Airlines (case no; IA(I.B.C) - 4361/2023);
  • Accipter Investments Aircraft 2 Limited v. Go Airlines (case no; IA(I.B.C) - 3481/2023);
  • EOS Aviation 12 Ireland Ltd v. Go Airlines (case no; IA(I.B.C) - 3472/2023);
  • DAE 13 Ireland Designated Activity Company v. Go Airlines (case no; IA(I.B.C) - 3316/20230;
  • Bluesky 19 Leasing Company Limited v. Interim Resolution Professional of Go Airlines (case no; IA(I.B.C) - 3277/2023);
  • Bluesky 31 Leasing Company Limited v. Interim Resolution Professional of Go Airlines (case no: IA(I.B.C) - 3280/2023);
  • Jackson Square Aviation Ireland Limited v. Interim Resolution Professional of Go Airlines (case no; IA(I.B.C) - 2944/2023); and
  • BOC Aviation Ireland Limited v. Go Airlines (case no; IA(I.B.C) - 2850/2023).

Go First says on its website that it has filed an application for immediate resolution and revival of operations. Its latest update had flights cancelled through to October 8, 2023. The airline says it hopes to be able to resume taking bookings shortly.