May 3rd 2023: Indian business environment is very competitive. Although India provided a large consumer base, however, due to high operational costs and a competitive environment, it is not easy to operate in the Indian market.
Since 2004 worlds suppose to be the best consultants wrote reports on the Indian aviation market stating it will be quite profitable around 2013 which I explained in my book “doing business in India and understanding pitfalls“, that why it will not be the case. Now as of now 2023 with flyers numbers number pre covid level Indian aviation industry still struggling.
Summary of Go Air India bankruptcy filing:
Currently, the assets of the company are not sufficient to meet its liabilities,” the airline said in the filing.
Go First has filed for bankruptcy, and owes financial creditors around 65 billion Indian rupees which is around ($800 million), according to its bankruptcy filing.
Go First has not yet defaulted on its dues as of April 30, but it anticipates defaults are imminent due to its present financial situation.
Central Bank of India, Bank of Baroda, IDBI Bank, Axis Bank, and Deutsche Bank are among the airline’s financial creditors.
Go First has also borrowed 12.92 billion rupees under the government’s emergency credit scheme during the Covid crisis.
The airline’s total liabilities to all creditors stand at 114.63 billion rupees, including dues to banks, financial institutions, vendors, and aircraft lessors.
The company has defaulted on payments to operational creditors and has received notices from lessors to terminate aircraft lease agreements.
Six lessors have also invoked letters of credit issued to them by lenders.