 "goair")
Trouble continues to mount for GoAir as the beleaguered airline has temporarily lost its slots and foreign bilateral rights to other carriers, including Air India and IndiGo, according to a report by the Times of India.
In the aviation industry, airlines of a particular country require a “bilateral air services agreement” with another country to operate international flights.
This agreement determines the number of flights (or seats) allowed per week between the two countries.
However, securing these flying rights is not sufficient; airlines must also obtain slots at both departure and arrival terminals to commence operations.
A slot is a specific date and time when an airline's aircraft is permitted to depart or arrive.
In India, these slots are allocated by a committee comprising officials from the Civil Aviation Ministry, the Directorate General of Civil Aviation (DGCA), airport operators, and representatives from the airlines.
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In an effort to support air passengers, the Civil Aviation Ministry has redistributed GoAir’s slots and bilateral rights among other airlines.
Air India, Vistara, and IndiGo have primarily received these allocations. Akasa has acquired GoAir's rights for destinations in Saudi Arabia, Kuwait, and Qatar, and is seeking rights for Dubai as well.
This redistribution process has been ongoing for some time, with airlines expressing interest in permanently acquiring these slots.
Air India and IndiGo are rapidly expanding their fleet, adding nearly one aircraft each week. AI Express and Akasa also plan significant growth, despite challenges related to Boeing's B737 MAX, a model both airlines have ordered.
Legal troubles and insolvency proceedings
GoAir, operating under the brand name Go First, is embroiled in a legal battle with Pratt & Whitney (P&W) at the Singapore Court of Arbitration, claiming about ~8,000 crore in compensation.
The airline attributes its bankruptcy to the failure of P&W engines, which forced it to ground many aircraft.
The airline itself filed for insolvency at the National Company Law Tribunal (NCLT) in May last year, due to revenue losses.
The NCLT had extended Go First's insolvency process by 60 days on April 8, following a third extension request from the airline.
The NCLT had previously extended the process by 90 days on November 23, 2023.
On April 26, the Delhi High Court directed the DGCA to deregister planes leased to Go First within five working days, providing relief to the lessors.
The civil aviation regulator complied with the order, allowing lessors to reclaim their aircraft.
However, engine lessors remain in limbo as the NCLT deferred its hearing on Go First’s insolvency case to July 11.
On Saturday, online travel company EaseMyTrip announced that it has withdrawn its bid for GoAir to focus on its core strengths. Chief executive officer (CEO) Nishant Pitti announced on Saturday, “We have decided to withdraw from the GoAir bid to concentrate on our core areas of strength. Our focus remains on leveraging our expertise and resources to achieve sustainable growth and success.”
Busy Bee Airways, majority-owned by Pitti, along with SpiceJet chief Ajay Singh, had jointly bid for Go First in February.
With EaseMyTrip withdrawing, it remains uncertain whether Singh will pursue the bid alone.
