In a surprising turn of events, Go FIRST, the Indian low-cost airline, voluntarily filed for bankruptcy in May 2023. This decision came as a shock to the aviation industry, especially since it occurred during a year that marked the best performance for domestic civil aviation in India, surpassing pre-COVID levels. The airline faced significant challenges, primarily stemming from ongoing issues with Pratt & Whitney engines, disputes related to the award of Singapore Arbitration, and increasing aircraft groundings. Faced with these mounting pressures, the management decided to exit the airline business.
Go FIRST’s struggles were notably brief compared to the protracted saga of Jet Airways, which has faced an enduring battle for its revival. While Jet Airways worked collaboratively with lessors to return its aircraft, Go FIRST took a more contentious approach. This led to numerous court battles as lessors sought legal avenues to reclaim their planes. At the time of its grounding, Go FIRST had a fleet of 54 aircraft, consisting of five A320ceo and 49 A320neo models.
In April 2024, the Delhi High Court intervened, directing the Directorate General of Civil Aviation (DGCA) to de-register the grounded planes, thus facilitating their transfer to lessors. However, the condition of the aircraft had deteriorated during the grounding period, with some planes remaining inoperable even before the airline ceased operations. The process of deregistration marked a pivotal moment, but it also signaled the beginning of a significant effort for lessors to restore the aircraft to airworthy condition and subsequently fly them out of India.
This situation created a ripple effect in the aviation sector, leading to increased work for Maintenance, Repair, and Overhaul (MRO) providers in India. Both government-owned Air India Engineering Services Limited (AIESL) and private MRO players were engaged in the effort to make the grounded aircraft operational again. Additionally, ferry pilots from around the world were called upon to assist in the transfer of these aircraft.
The grounded fleet was scattered across various locations in India, with 23 planes in Delhi, nine in Bengaluru, nine in Mumbai, five in Kannur, three in Nagpur, two in Hyderabad, and one each in Ahmedabad, Kochi, and Mopa, Goa.
From July to September 2024, progress was made as 13 out of the 54 grounded planes were successfully flown out of India. The aircraft that departed included six from Delhi, four from Bengaluru, and one each from Nagpur, Mumbai, and Kannur. This movement of planes not only assisted lessors in recovering their assets but also alleviated parking constraints at Indian airports. With the release of these parking bays, other airlines, such as IndiGo and Air India Express, could expand their operations and add capacity, ultimately benefiting the overall aviation landscape in India.
The exit of Go FIRST from the airline business has created a vacuum in the market, but it has also opened up opportunities for other carriers to capture the growing demand for air travel. As the domestic aviation sector continues to rebound, the movement of grounded aircraft and the subsequent expansion by other airlines will play a crucial role in shaping the future of air travel in India. The current situation serves as a reminder of the challenges faced by airlines in a competitive environment and the importance of resilience in the face of adversity.