The aviation industry has witnessed its fair share of turbulence over the years, with several major airlines succumbing to financial crises and filing for bankruptcy. In a recent development, Go First (formerly known as GoAir) added its name to the growing list of airlines facing insolvency when it voluntarily filed for insolvency in India in early May 2023 prompting intervention by the regulatory authorities and government.
The Directorate General of Civil Aviation (DGCA) responded swiftly to Go First’s insolvency application by issuing a show cause notice to the airline following the suspension of its flights. However, the airline found support from Mr. Jyotiraditya Scindia, the Minister of Civil Aviation, who urged Go First to make alternative arrangements for its customers to minimise inconvenience.
Aarna Law analysed the far-reaching implications of Go First’s insolvency case for the Indian airline industry, which will particularly affect lessors who provide a significant portion of the aircraft used by carriers.