Insolvent Go Air seeks initial interest from potential buyers

The insolvency administrator of Go Airlines India Ltd. is seeking initial bids from prospective investors willing to revive the grounded carrier.

Expressions of interest must be submitted by Aug. 9, Shailendra Ajmera, the airline’s resolution professional, said in a notice published in the local newspaper Economic Times on Monday. A shortlist of applicants will be issued on Aug. 19, while any objections to the selected candidates have to come in by the end of the following week. 

For Go, helmed by billionaire Nusli Wadia’s conglomerate, the move could potentially lead to a change in ownership. Jet Airways India Ltd. was handed over to new owners after the carrier collapsed in 2019 and entered the insolvency resolution proceedings. It still hasn’t returned to the skies.

IndiGo, India’s top airline, and Air India Ltd. are in discussions with lessors and airport operators to take Go’s Airbus SE aircraft as well as landing and parking slots, Bloomberg News reported in May.

Go voluntarily filed for insolvency in May, blaming Pratt & Whitney’s failing engines that it said grounded half of its A320neo fleet, an account the engine maker has refuted. The airline, which has about 4,200 employees, said it was “no longer in a position to continue to meet its financial obligations” as it blamed Pratt for failing to provide the required spare leased engines. Go’s revenue for the fiscal 2022 stood at 41.8 billion rupees ($507 million).

Inviting investor interest is a procedural step under India’s bankruptcy law. The resolution administrator, along with creditors, typically assesses rescue proposals and transfers the insolvent company to the successful bidder.