As per the application by the Company to the NCLT, it had committed a default of INR 2,660 crore (USD 321 million approx.) towards aircraft lessors and INR 1,202 (USD 145 million approx.) This is because the moratorium effectively prevents aircraft lessors from repossessing its aircraft even if the Company has not met its financial obligations. Additionally, it faces obstacles from aircraft lessors who are working towards repossessing their aircrafts, and other competing airlines who wish to acquire the Company's assets. Footnotes1. https://www.bqprime.com/business/air-passenger-traffic-jumps-to-nearly-three-year-high-in-december2. https://www.livemint.com/companies/news/go-airlines-offers-its-pilots-retention-allowance-of-rs1-lakh-a-month-rs50-000-to-first-officers-11685363823560.html3. https://www.thehindu.com/news/national/dgca-asks-go-first-to-submit-a-revival-plan-within-30-days/article66892499.ece4. https://www.livemint.com/companies/news/wadia-group-holding-co-makes-provisions-on-investment-in-go-air-11685346287659.htmlThe content of this article is intended to provide a general guide to the subject matter.

Source: Mint June 07, 2023 21:25 UTC