Wednesday, January 22, 2025 In a significant development on January 22, 2025, the National Company Law Tribunal (NCLT) issued a ruling for the liquidation of Go First, the budget airline that ceased its operations in May 2023 due to severe financial struggles. The airline, which once operated in the ultra-low-cost segment of India’s aviation market, has faced increasing financial difficulties for several years. This decision follows the airline’s voluntary insolvency resolution process that was initiated in May 2023.
With the tribunal’s order now in effect, Go Airlines (India) Ltd. has entered its final stages of closure. The Tribunal’s Decision and the Liquidation Process The NCLT’s 15-page ruling provides a comprehensive explanation of its decision to order liquidation.
According to the order, the Committee of Creditors (CoC) has been granted the responsibility to make the final decision regarding liquidation, which could take place before any resolution plan is approved. The NCLT noted that this step was a necessary action, given the airline’s inability to secure a viable recovery solution or come to an agreement on a resolution plan with its creditors. This move adds to the series of setbacks faced by the Indian aviation industry, coming just months after the Supreme Court’s decision to liquidate Jet Airways in November 2024.
Financial Fallout for Go First Go First’s financial situation has been dire, with the airline owing a staggering Rs 6,521 crore to v.