EaseMyTrip CEO Nishant Pitti Targets Go First Assets

NCLAT Offers New Hope for Go First Airways Amid Liquidation Process

In a significant development for the struggling Go First Airways, the National Company Law Appellate Tribunal (NCLAT) has provided a potential lifeline while still upholding the airline’s liquidation order. Busy Bee Airways, backed by EaseMyTrip CEO Nishant Pitti, has received the green light to propose an asset buyout plan, which could reshape the future of the grounded airline.

Go First Airways: A Brief Background

Go First Airways, formerly known as Go Air, took its last flight on May 3, 2023, after more than 17 years of operation. The airline voluntarily sought insolvency resolution under the Insolvency and Bankruptcy Code (IBC) that same month, attributing its financial troubles to operational challenges and engine supply issues with American manufacturer Pratt & Whitney.

In July 2024, Nishant Pitti made headlines by teaming up with SpiceJet Chairman Ajay Singh to submit a bid for Go First. However, their offer was rejected by the Resolution Professional. Other entities, including Sharjah-based Sky One, have also expressed interest in acquiring the airline during its ongoing insolvency proceedings.

Liquidation Order and Its Implications

On January 20, 2025, the National Company Law Tribunal (NCLT) ordered the complete liquidation of Go First. This decision was met with opposition from multiple parties, including Busy Bee Airways, the trade union Bhartiya Kamgar Sena Mumbai, and Captain Arjun Dhawan, all of whom filed appeals against the liquidation. The trade union argued that liquidation would result in approximately 5,000 workers losing their jobs without compensation.

NCLAT’s Recent Decision: A New Opportunity for Go First

On April 4, the NCLAT dismissed all appeals against the liquidation order. However, the tribunal’s recent ruling opens the door for Busy Bee Airways to propose an asset buyout scheme to Go First’s appointed liquidator, Dinkar Venkatasubramanian. The liquidator is now required to "consider" Busy Bee’s proposal, allowing for potential negotiations with the Committee of Creditors.

Future Prospects for Go First Airways

Despite the challenging circumstances, Go First still retains valuable assets, including its brand value, airport slots, and ground infrastructure. With most of its fleet already de-registered following a Delhi High Court ruling in April 2024, any buyout plan will likely focus on these remaining assets. Busy Bee Airways has asserted that Go First holds a valid operating license from the Directorate General of Civil Aviation (DGCA) and is committed to acquiring the airline as a going concern, even amid the liquidation process.

Nishant Pitti, as the majority shareholder of Busy Bee Airways, is expected to swiftly engage with lenders and the liquidator to formalize a proposal for the acquisition. Additionally, the trade union has requested that Go First remain operational until the resolution of ongoing arbitration with Pratt & Whitney at the Singapore International Arbitration Centre.

In conclusion, while challenges remain for Go First Airways, the NCLAT’s decision to allow Busy Bee Airways to propose a buyout plan may provide a crucial opportunity for the airline’s revival.

What are your thoughts on the future of Go First Airways? Share your insights below and check out our related articles for more updates on the aviation industry!

For further reading, explore the Insolvency and Bankruptcy Code and the latest developments at EaseMyTrip.