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Lesson for Go First from Jet Airways' insolvency: Restart quickly

Jet Airways was much bigger when it shut down in 2019. It operated a fleet of 100-plus aircraft out of over 40 domestic and 24 international locations

Aneesh Phadnis Ruchika Chitravanshi New Delhi/Mumbai

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Go First

4 min read Last Updated : May 16 2023 | 6:44 PM IST

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Both Jet Airways and Go First have met with a similar fate of landing up in insolvency, albeit for different reasons. Whether Go First will be able to avoid the sharp erosion in value like in the case of Jet, experts say, will depend on how quickly it is able to restart operations and retain its slots at airports.

Go First, owned by the Wadia group, filed for voluntary corporate insolvency resolution on May 2 due to inadequate capacity utilisation that led to a cash crunch. Jet Airways, on the other hand, had tried its hand at debt restructuring before being dragged into insolvency proceedings by its lenders in June 2019, and the process hasn’t neared an end four years since.

While Jet Airways struggled to get investors after it entered insolvency, Go First might not face that problem as the existing promoters would be able to participate in the resolution process. This is because Go First went for voluntary insolvency when the airline&rs