DELHI- The National Company Law Appellate Tribunal (NCLAT) has created a possible lifeline for the grounded Go First Airways (G8) while still upholding its liquidation order.
EaseMyTrip CEO Nishant Pitti’s company, Busy Bee Airways, in which he is a major shareholder, has received permission to propose an asset buyout plan despite the airline’s ongoing liquidation process.
Photo- Compiled By Aviation A2ZGo First Assets
Go First Airways, previously known as Go Air, suspended all flights on May 3, 2023, after operating for more than 17 years. The airline voluntarily filed for insolvency resolution under the Insolvency and Bankruptcy Code (IBC) that same month.
The carrier blamed its financial collapse on operational constraints and grounded aircraft resulting from engine supply issues with American manufacturer Pratt & Whitney.
In July 2024, Nishant Pitti partnered with SpiceJet (SG) Chairman Ajay Singh to make a joint bid for acquiring Go First. However, the Resolution Professional rejected this offer. Sharjah-based aviation company Sky One also showed interest in acquiring the troubled airline during the insolvency resolution process.
Photo: Harsh Tekriwal / avgeekwithlensLiquidation Order
On January 20, 2025, the National Company Law Tribunal (NCLT) ordered the complete liquidation of Go First. The tribunal stated that the Committee of Creditors (CoC) had the authority to make this decision before confirming any resolution plan.
This liquidation order faced challenges from multiple parties. Busy Bee Airways (led by Pitti), Bhartiya Kamgar Sena Mumbai (a trade union), and Captain Arjun Dhawan all filed appeals against the decision.
“The trade union specifically argued that liquidation would leave approximately 5,000 workers without jobs or compensation.”
NCLAT’s Recent Decision
On Friday, April 4, the NCLAT dismissed all appeals challenging the liquidation order. However, in a significant development, the tribunal allowed Busy Bee Airways to submit an asset buyout scheme to Go First’s liquidator, Dinkar Venkatasubramanian, who was appointed in October 2024.
According to the order, the liquidator must “consider” Busy Bee’s scheme, opening the door for new negotiations with the Committee of Creditors and the liquidator.
Photo- WikipediaFuture Prospects
With most of Go First’s fleet already de-registered following a Delhi High Court order in April 2024, any buyout scheme would focus on the airline’s remaining assets. These likely include its brand value, airport slots, and ground infrastructure.
Busy Bee Airways has maintained that Go First still possesses valuable assets and holds a valid license from the Directorate General of Civil Aviation (DGCA) to operate flights. The company has expressed readiness to acquire Go First as a going concern despite the liquidation process.
Nishant Pitti, who serves as the majority shareholder in Busy Bee Airways, is expected to quickly engage with lenders and the liquidator to present a formal proposal for acquiring these remaining assets.
The trade union has also requested that the airline remain a going concern until the conclusion of ongoing arbitration proceedings with Pratt & Whitney at the Singapore International Arbitration Centre.
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Go First Grounded A320neos Getting Disassembled for Parts
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