Go First’s bankruptcy and SpiceJet's troubles highlight challenges faced by airlines in maintaining sustainable operations in India's highly competitive and cost-sensitive market.
Go First approached the Delaware court to enforce an arbitration order in Singapore against P&W, which it blames for its financial troubles by arguing the US firm failed to supply engines on time.
SMBC, along with other international firms, raised the alarm after NCLT gave Go First bankruptcy protection to allow it to revive itself, but barred lessors from repossessing planes.
If the tribunal admits Go First's plea, it will lead to the appointment of a new resolution professional who will take over management to revive the airline run by Wadia Group.
Go First has been given 15 days to reply to the notice, following which a decision on the continuation of their Air Operators Certificate (AOC) would be taken.
Wadia Group-owned Go First said in petition to NCLT that it owes Rs 11,463 cr to creditors & that its assets 'are not sufficient to meet its liabilities'.
Following the transaction which is expected to be completed by November, Dassault Reliance Aerospace Ltd will become an associate company, with Reliance retaining a 49% stake.
From Munir’s point of view, a few bumps here and there is par for the course. He isn’t going to drive his dumper truck to its doom. He wants to use it as a weapon.
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