Tata Group, India’s largest Conglomerate and parent company of Air India (AI) and India’s biggest carrier, IndiGo (6E), are in talks to take the Airbus A320 planes from the troubled Go First (G8) airlines.
This development came after the LCC, which was founded before IndiGo filed for insolvency proceedings. Furthermore, India’s Aviation regulator DGCA ordered the airline to stop selling the tickets.
IndiGo and Air India are looking for Go First Assets
According to insiders, Tata Group and IndiGo are talking about landing and parking slots with Go Air’s lessors and airport operators, including those in New Delhi and Mumbai. As per the filings with DGCA, Go First Airline’s lessors are trying to repossess 36 planes.
According to anonymous sources, a number of parties have shown interest in the airport slots, including new carrier Akasa Air.
The competition for Go First’s assets may hinder its efforts to restructure debt and resume operations. This situation mirrors the time when Kingfisher Airlines Ltd., owned by fugitive billionaire Vijay Mallya, was directed to stop selling tickets and eventually ceased operations.
DGCA will decide whether Go First can retain its operating license in two weeks. Further, Sky High XCV Leasing Ltd., ACG Aircraft Leasing Ireland Ltd., and SMBC Aviation Capital Ltd. are among Go First Airline’s major lessors.
Also, this is not the first time that IndiGo and Air India have tried to grab the opportunity to acquire aircraft in the supply chain and delivery delayed market. At the time of Jet Airways‘ shutdown back in 2019. Both the airlines, along with SpiceJet and Go First, tried to acquire the Jet’s plane.
So such things are not new in aviation, and we might see G8’s aircraft flying with Air India, IndiGo, and other carriers. However, Akasa Air operates all being fleet, and it’s really difficult to understand why they are bidding for it.
Go First files for Insolvency
The airline has filed an emergency petition in Delaware Federal court to enforce two arbitral awards against the engine manufacturer to address this issue.
The awards order Pratt & Whitney to immediately deliver serviceable engines to Go First. Pratt & Whitney engines power the airline’s Airbus A320 neo aircraft.
In the recent legal proceedings at the Singapore International Arbitration Commission. Go First has been granted relief due to non-compliance with contractual obligations by International Aero Engines LLC. Further, Int’l Aero Engines is the engine partner of Pratt & Whitney.
Currently, Go First has a fleet of 54 aircraft. Likewise, all of them are taken on lease. While Indigo has a fleet of more than 300 aircraft, Air India has close to 120 aircraft.
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