GoAir, which ceased operations in May last year, may now head for liquidation as Nishant Pitti, a key bidder to revive it under insolvency laws, withdrew on Saturday. The curtains were expected for the erstwhile Wadia Group airline after the Delhi High Court last month allowed lessors of Go’s 54 aircraft to repossess them.
The Centre could now distribute Go’s slots and foreign bilateral rights to other airlines like Air India Group, IndiGo, and Akasa, which are growing rapidly, after getting the legal nod. Akasa, for instance, did not receive any bilaterals for Dubai—the biggest destination for Indian globetrotters—as the flying rights have been exhausted. Once Go’s bilaterals are given out to others, that will mean more flights—and, hopefully, slightly lower fares—on constrained routes with passengers suffering from under-capacity amid demand surge.
Go managed to hold onto leased planes, engines, slots, and bilaterals under a moratorium provided by the Insolvency and Bankruptcy Code. “After careful consideration, I have decided to withdraw from the GoAir bid in my personal capacity. This decision allows me to better focus on other strategic priorities and initiatives that align with our long-term vision and growth objectives... we continue to navigate new opportunities and challenges,” said Pitti, founder-CEO of EaseMyTrip. Like scores of passengers and travel agents, Pitti’s company has a large amount stuck with Go in unrefunded tickets.
Also Read: EaseMyTrip founder Nishant Pitti withdraws from GoAir bid
Go’s successful bidder could have received arbitration proceeds from an ongoing Rs 8,000-crore damages case the airline had filed against Pratt & Whitney, whose snag-ridden engines for Airbus A320s grounded its planes, contributing to the airline’s demise. Go owed over Rs 11,000 crore to creditors and employees when it shut down on May 3, 2023. The committee of creditors (banks) had nudged the two bidders for Go, including Pitti, to up their bids given the airline’s massive debts.
“Like Kingfisher, Jet, and scores of other airline failures, the Go episode is also very sad. We have lost our hard-earned retirement funds and salaries. The only saving grace has been we have been spared a pointless revival exercise. An example is Jet, which has had a successful bidder for years now but hasn’t taken off again,” said a former Go employee.
(With inputs from agencies)
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