Will Go First fly again? A timeline of the airline's crisis

The Central Bank of India has classified Go First's loan of over Rs 2,000 crore as a non-performing asset (NPA). Go First a low-cost airline, had abruptly shut its operations in May and voluntarily filed for bankruptcy. The airline is owned by the Wadia Group and is currently undergoing insolvency proceedings. 

According to Go First's insolvency filing, it had a total debt of Rs 6,521 crore. Its creditors include Bank of Baroda Ltd, IDBI Bank Ltd, Axis Bank Ltd and Deutsche Bank. After Central Bank of India's latest move, Go First still owes more than Rs 4,000 crore to different banks.

Go First voluntarily files for insolvency

The Wadia group-owned low-cost carrier filed for initiation of insolvency proceedings in May 2023. A significant number of Go First planes were grounded prior to the filing of insolvency proceedings due to engine troubles it was facing. The company blamed engine maker Pratt & Whitney's "faulty engines".

“The percentage of grounded aircraft due to Pratt & Whitney’s faulty engines has grown from 7 per cent in December 2019 to 31 per cent in December 2020 to 50 per cent in December 2022," Go First said. The company also said it lost Rs 10,800 crore in revenue and additional expenses.

Legal fight

Go First approached the Delaware court in May to enforce the arbitration award in Singapore against Pratt & Whitney. The motion by Go First was denied by the Delaware court in July.

DGCA approves restart of operations

In July, the Directorate General of Civil Aviation (DGCA) approved Go First's plan to restart operations with 15 aircraft and 114 daily flights. However, the airline has not yet been able to do so.

Employees resign

As many as 500 employees including 30 pilots, 50 crew members, 50 ground handling and engineering staff have resigned from Go First since May 2023.

Go First gets expressions of interest

Earlier this month, Jindal Power and Jettingways Airways submitted expression of interest for Go First. The Wadia Group, however, showed no intent to bid for the grounded airline, according to a report by news agency Reuters.

Flight cancellation

On October 19, Go First announced that Go First flights scheduled till November 30 have been cancelled due to "operational reasons." Go First flights have been grounded since May and the company has announced the cancellation of scheduled flights at least 50 times in the past six months.

It is unclear when Go First will be able to resume operations. The airline is facing a number of challenges, including financial problems, engine issues, and a shortage of pilots. The Go First crisis has had a significant impact on the Indian aviation industry. It remains to be seen when the airline will be able to resume operations and regain the confidence of passengers and employees.