In December 2023, lenders of the troubled Indian airline Go First—founded by billionaire Nusli Wadia—moved ahead with a proposal to liquidate the insolvent carrier, following its repeated failure to meet debt resolution deadlines.
The Committee of Creditors (CoC), consisting of major financial institutions, voted to liquidate Go First, marking a significant development in the airline’s ongoing financial crisis.
Go First’s Debt Breakdown: Over ₹11,000 Crore in Liabilities
According to disclosures made by the airline, Go First owes approximately ₹6,521 crore to various lenders. The debt distribution is as follows:
- Central Bank of India: ₹1,987 crore (highest exposure)
- Bank of Baroda: ₹1,430 crore
- Deutsche Bank: ₹1,320 crore
- IDBI Bank: ₹58 crore
Beyond bank loans, Go First has substantial outstanding dues:
- ₹2,000 crore to aircraft lessors
- ₹1,000 crore to vendors
- ₹600 crore to travel agents
- ₹500 crore in pending refunds to customers
Additionally, the airline availed ₹1,292 crore under the Government of India’s Emergency Credit Line Guarantee Scheme (ECLGS), which was launched during the COVID-19 pandemic to support struggling businesses.
Timeline of Go First’s Crisis
The airline ceased operations on May 2, 2023, and just eight days later, the National Company Law Tribunal (NCLT) admitted its plea for voluntary insolvency resolution. At the time of this filing, Go First had a workforce of around 7,000 employees.
The primary cause behind the grounding of its fleet was a shortage of engines and spare parts, which led to over 50% of its aircraft being non-operational. This severe disruption in operations forced the low-cost carrier to seek insolvency protection.
Go First’s Fleet and Legal Battles
When it suspended operations, Go First had a fleet of 56 leased aircraft. Now, aircraft and engine lessors are locked in legal battles to reclaim their assets amid the ongoing insolvency proceedings.
The End of the Runway?
With over ₹11,000 crore in liabilities and dwindling chances of revival, Go First’s future looks increasingly uncertain. The move toward liquidation signals the possible end of operations for what was once India’s fourth-largest airline.
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