Go First Insolvency Goes Into Headlines Here’s Everything You Need To Know

Go First, formerly known as GoAir, has been facing a tough time lately. The airline, which was already struggling due to the pandemic-induced slump in air travel, has now been hit by a wave of insolvency proceedings. The airline’s lessors, who lease aircraft to the company, have started legal action against it, seeking to ground and repossess the planes. 

Back to the Ground: Lessors Take action against Go First Insolvency

Go First’s financial troubles began in 2020 when the pandemic hit and air travel came to a near halt. Like many other airlines, Go First had to cancel flights and refund passengers, which put a huge dent in its revenue. The airline also had to bear the cost of maintaining its fleet, paying salaries to its employees, and servicing its debt. 

To make matters worse, Go First was already facing problems before the pandemic. The airline had been expanding rapidly, but it was struggling to compete with larger rivals like IndiGo and SpiceJet. Go First had also been hit by a spate of technical issues, which had led to flight cancellations and delays.

The lessors who lease aircraft to Go First have become increasingly worried about the airline’s financial situation. According to reports, several lessors have started legal action against the company, seeking to ground and repossess the planes. The lessors are reportedly owed millions of dollars in unpaid lease rentals and maintenance fees. 

The move by the lessors has put Go First in a difficult position. If the airline’s planes are grounded or repossessed, it will be unable to operate its flights, which will further harm its financial position. The airline has been trying to negotiate with the lessors, but so far, no agreement has been reached. 

What Go First Response over the News?

Go First has acknowledged the legal action taken by the lessors and has stated that it is in talks with them to resolve the issue. The airline has also said that it is taking steps to reduce its costs and improve its financial position. 

However, Go First’s situation remains precarious. The airline has already had to cancel several flights due to a shortage of aircraft, and its financial position is becoming increasingly difficult. The insolvency proceedings against the company have made it even harder for the airline to recover. 

What will be the Future of Go First?

The future of Go First remains uncertain. The airline is facing a range of challenges, from the pandemic-induced slump in air travel to the legal action taken by its lessors. If the airline is unable to resolve its financial troubles, it may have to file for bankruptcy or be forced to shut down. 

For now, Go First is hoping to find a way out of its troubles. The airline is in talks with its lessors and is taking steps to reduce its costs. However, it remains to be seen whether these efforts will be enough to save the company.