India's Go First Airlines has invited investor interest in the company through an administrator appointed by the court. The carrier is in the middle of an insolvency process. A newspaper advertisement said on Monday (July 10) that the airline has invited an Expression of Interest (EoI).

The EoI signifies the formal commencement of seeking buyers or investors from a potential investment in line with requirements under Indian law.

Reuters said that Go Airlines did not respond to a request for comment.

In May, Go First Airlines filed for bankruptcy protection blaming "faulty" Pratt &amp; Whitney engines which it said were responsible for the grounding of about half of its 54 Airbus A320neos. Pratt &amp; Whitney had said that claims from Go Airlines were without merit.

According to regulations, the issuance and publication of Form G - related to the invitation for EoI - would be the "prescribed next - step for taking the insolvency to its logical conclusion," said Abhirup Dasgupta, a partner at HSA Advocates.

"The final resolution will, however, be subject to the crystallisation of the rights of the lessors," Dasgupta, who specialises in insolvency law but is not involved in Go First's proceedings, said.

<h2>Turbulent times</h2>

It has been a month of major turbulence for Go Airlines amid a surge in airfares to rattled aircraft lessor to thousands of employees staring at uncertainty. The cash-strapped airline Go&nbsp;First suspended flights from May 3.

As the government and other stakeholders hope that Go First restarts operations at the earliest, plans are being worked out for the budget airline's revival.

A section of Go First staff are optimistic about the operations restarting, while another is pessimistic, considering what happened to erstwhile Kingfisher Airlines and Jet Airways, reported Press Trust of India (PTI).

Earlier this week, senior executives of Go First discussed the revival plans with senior officials of the Directorate General of Civil Aviation (DGCA).

Apart from the uncertainty staring at more than 7,000 Go First staff, a significant fallout is the spike in air ticket prices on certain routes that used to be serviced by the airline, which was operating around 170-180 flights daily.

(With inputs from agencies)

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India's Go First Airlines has invited investor interest in the company through an administrator appointed by the court. The carrier is in the middle of an insolvency process.

India's Go First Airlines has invited investor interest in the company through an administrator appointed by the court. The carrier is in the middle of an insolvency process. A newspaper advertisement said on Monday (July 10) that the airline has invited an Expression of Interest (EoI). The EoI signifies the formal commencement of seeking buyers or investors from a potential investment in line with requirements under Indian law. Reuters said that Go Airlines did not respond to a request for comment. In May, Go First Airlines filed for bankruptcy protection blaming "faulty" Pratt & Whitney engines which it said were responsible for the grounding of about half of its 54 Airbus A320neos. Pratt & Whitney had said that claims from Go Airlines were without merit. According to regulations, the issuance and publication of Form G - related to the invitation for EoI - would be the "prescribed next - step for taking the insolvency to its logical conclusion," said Abhirup Dasgupta, a partner at HSA Advocates. "The final resolution will, however, be subject to the crystallisation of the rights of the lessors," Dasgupta, who specialises in insolvency law but is not involved in Go First's proceedings, said. Turbulent times It has been a month of major turbulence for Go Airlines amid a surge in airfares to rattled aircraft lessor to thousands of employees staring at uncertainty. The cash-strapped airline Go First suspended flights from May 3. As the government and other stakeholders hope that Go First restarts operations at the earliest, plans are being worked out for the budget airline's revival. A section of Go First staff are optimistic about the operations restarting, while another is pessimistic, considering what happened to erstwhile Kingfisher Airlines and Jet Airways, reported Press Trust of India (PTI). Earlier this week, senior executives of Go First discussed the revival plans with senior officials of the Directorate General of Civil Aviation (DGCA). Apart from the uncertainty staring at more than 7,000 Go First staff, a significant fallout is the spike in air ticket prices on certain routes that used to be serviced by the airline, which was operating around 170-180 flights daily. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Go First Airlines, in middle of insolvency process, invites investor bids

India has been placed on a watchlist with a negative outlook by a global aviation leasing watchdog, which said it had failed to comply with international aircraft repossession norms after airline Go First was granted bankruptcy protection.

The move by the Aviation Working Group, a UK-based entity that monitors leasing and financing laws, could raise leasing costs for Indian airlines and hurt lessors' confidence just as the world’s third-largest domestic market witness record growth.

Such an outlook will "have a direct and material impact on future financing and leases to Indian airlines", AWG told Go First in a letter copied to India's aviation minister.

Go Airlines (India) Ltd filed for bankruptcy protection last week, blaming "faulty" Pratt &amp; Whitney engines for the grounding of about half its 54 Airbus A320neos. Pratt, part of Raytheon Technologies, says the claims are without evidence and divert attention from the airline's financial woes.

In granting protection, the Indian tribunal ordered a freeze on Go First's assets even though some lessors had already terminated leases and placed requests with the aviation regulator to repossess more than 40 planes.

Failure to process the applications before the freeze was imposed, "results in a negative outlook", AWG said in the notice.

India's aviation ministry and regulator were not immediately available to comment.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/from-crisis-to-cockpit-go-first-employees-flock-to-air-india-for-a-chance-to-rise-again-589191">From crisis to cockpit: Go First employees flock to Air India for a chance to rise again</a>

<h2>TREATY TEST</h2>

The dispute comes as Indian air travel is booming and hundreds of new jets have been ordered by local carriers, who depend heavily on foreign lessors to finance plane purchases.

It is also the latest test of a 2001 treaty designed to smooth the growth of aviation by protecting repossession rights, which hit headlines when Russia blocked the repossession of jets in retaliation over Western Ukraine-related sanctions last year.

India has ratified the so-called Cape Town Convention but has yet to pass a law resolving conflicts with the country's insolvency and bankruptcy code, which is backed by parliament.

"Given (this), implementation of the Convention will run into challenges when read with the bankruptcy laws," said Syed Tamjeed Ahmad, co-founder of aviation law firm Spaviatech Law.

Go First's lessors include SMBC Aviation, CDB Aviation's GY Aviation Leasing, Jackson Square Aviation and BOC Aviation.

WATCH | Go Air says its planes being repossessed, requests for quick decision on bankruptcy

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In its letter to the airline's court-appointed administrator at Go First, AWG said the airline has an "obligation" to preserve the aircraft and maintain their value until the creditors and lessors can take possession.

AWG is a not-for-profit entity co-chaired by Airbus and Boeing. Members include major lessors and financial institutions like Aircastle, BOC Aviation, SMBC Aviation Capital, Deutsche Bank, Goldman Sachs and Morgan Stanley.

The negative outlook by AWG is under what it calls the compliance index, which addresses whether requirements under the Cape Town Convention are met in practice.

India's score has been reduced to 3 from 3.5 earlier.

"If those jets can't get repossessed, everyone in the country pays more. There is a risk premium," said Richard Aboulafia, managing director at Aerodynamic Advisory.

The warning is the second in as many months after AWG in April issued an alert about Vietnam's compliance with international norms in a dispute over repossession of four jets. 
&nbsp;

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India has been placed on a watchlist with a negative outlook by a global aviation leasing watchdog, which said it had failed to comply with international aircraft repossession norms after airline Go First was granted bankruptcy protection.

India has been placed on a watchlist with a negative outlook by a global aviation leasing watchdog, which said it had failed to comply with international aircraft repossession norms after airline Go First was granted bankruptcy protection. The move by the Aviation Working Group, a UK-based entity that monitors leasing and financing laws, could raise leasing costs for Indian airlines and hurt lessors' confidence just as the world’s third-largest domestic market witness record growth. Such an outlook will "have a direct and material impact on future financing and leases to Indian airlines", AWG told Go First in a letter copied to India's aviation minister. Go Airlines (India) Ltd filed for bankruptcy protection last week, blaming "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neos. Pratt, part of Raytheon Technologies, says the claims are without evidence and divert attention from the airline's financial woes. In granting protection, the Indian tribunal ordered a freeze on Go First's assets even though some lessors had already terminated leases and placed requests with the aviation regulator to repossess more than 40 planes. Failure to process the applications before the freeze was imposed, "results in a negative outlook", AWG said in the notice. India's aviation ministry and regulator were not immediately available to comment. ALSO READ | From crisis to cockpit: Go First employees flock to Air India for a chance to rise again TREATY TEST The dispute comes as Indian air travel is booming and hundreds of new jets have been ordered by local carriers, who depend heavily on foreign lessors to finance plane purchases. It is also the latest test of a 2001 treaty designed to smooth the growth of aviation by protecting repossession rights, which hit headlines when Russia blocked the repossession of jets in retaliation over Western Ukraine-related sanctions last year. India has ratified the so-called Cape Town Convention but has yet to pass a law resolving conflicts with the country's insolvency and bankruptcy code, which is backed by parliament. "Given (this), implementation of the Convention will run into challenges when read with the bankruptcy laws," said Syed Tamjeed Ahmad, co-founder of aviation law firm Spaviatech Law. Go First's lessors include SMBC Aviation, CDB Aviation's GY Aviation Leasing, Jackson Square Aviation and BOC Aviation. WATCH | Go Air says its planes being repossessed, requests for quick decision on bankruptcy In its letter to the airline's court-appointed administrator at Go First, AWG said the airline has an "obligation" to preserve the aircraft and maintain their value until the creditors and lessors can take possession. AWG is a not-for-profit entity co-chaired by Airbus and Boeing. Members include major lessors and financial institutions like Aircastle, BOC Aviation, SMBC Aviation Capital, Deutsche Bank, Goldman Sachs and Morgan Stanley. The negative outlook by AWG is under what it calls the compliance index, which addresses whether requirements under the Cape Town Convention are met in practice. India's score has been reduced to 3 from 3.5 earlier. "If those jets can't get repossessed, everyone in the country pays more. There is a risk premium," said Richard Aboulafia, managing director at Aerodynamic Advisory. The warning is the second in as many months after AWG in April issued an alert about Vietnam's compliance with international norms in a dispute over repossession of four jets. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Aviation watchdog puts India on watchlist after Go First-Pratt & Whitney tiff over jets

India's Go Airlines has requested that a decision be made swiftly on its insolvency petition the request comes a week after the cash-strapped airline filed for bankruptcy according to the airline. The Plea for an urgent order comes as companies that owes money to were repossessing its planes but analysts say that no other Indian airline can take over goes Fleet.

Go Air says its planes being repossessed, requests for quick decision on bankruptcy

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Go First Airlines, in middle of insolvency process, invites investor bids

Aviation watchdog puts India on watchlist after Go First-Pratt & Whitney tiff over jets

Go Air says its planes being repossessed, requests for quick decision on bankruptcy