Skift Take
While the jury is still out on Go First making a comeback, it is important for India to ensure that the crisis doesn’t dent the larger goal of the country’s aviation industry.
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The committee of creditors of troubled airline Go First recently had its first meeting and has reportedly decided to replace the team in charge of resolving the airline's financial problems. The committee wants to have complete control over the process of finding a solution for Go First.
It appointed Shailendra Ajmera of consulting firm Ernst & Young as the new resolution professional in the airline's insolvency case, according to a report by Press Trust of India. The committee will look into Go First's revival plan and submit it to the Indian aviation watchdog, Directorate General of Civil Aviation after receiving approval. Earlier, Go First had submitted a six-month revival plan to the aviation regulator under which the airline proposed to resume operations with a fleet of 26 aircraft and 152 daily flights.
Lenders to the airline — Bank of Baroda, Central Bank of India, IDBI and Deutsche Bank — have an exposure of $797.38 million. Last month, Wadia Group’s Go First had filed for voluntary insolvency blaming “faulty” Pratt & Whitney engines for the grounding of about half its fleet, and was granted bankruptcy protection by Indian bankruptcy court National Company Law Tribun