Go First dealt significant blow as potential buyer backs out

Nishant Pitti, backed by BusyBee Airways, withdrew its bid to acquire the struggling airline. File pic

In a significant blow to Go First's recovery efforts, Nishant Pitti, backed by BusyBee Airways, has withdrawn his bid to acquire the struggling airline. This development marks another nail in the coffin for Go First, which has been grappling with financial woes.

"Go First, formerly known as GoAir, ceased its operations on May 3, 2023, a day after declaring insolvency. The airline's abrupt halt came as a shock to many, leaving passengers stranded and raising concerns about its future viability. The insolvency was filed on May 2, 2023," said an industry source familiar with the matter.

Nishant Pitti's withdrawal of the bid compounds the airline's challenges, diminishing hopes for a swift revival. BusyBee Airways, under Pitti's leadership, was seen as a potential saviour for Go First. However, the reasons behind Pitti's decision to retract the bid remain unclear.

Pitti in a post on X stated, "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."

Another industry source said, "In its bankruptcy filing, Go First had blamed its financial crunch on faulty engines of US-based Pratt & Whitney, an aircraft engine manufacturing company, claiming it was forced to ground 28 of its 56 aircraft. The grounded airline reportedly owes its creditors several hundred crores."

"Go First's representatives earlier during the lessors' plea filed in the Delhi High Court had told the court that returning the aircraft to the lessors would effectively make the airline, which has 7,000 employees to look after, dead," the source added.

Go First lessors on October 5 last year had requested the high court for deregistration of the aircraft in light of the October 3 notification by the Ministry of Corporate Affairs (MCA) that exempted aircraft, engines, and airframes from a moratorium under the Insolvency and Bankruptcy Code (IBC), 2016.

An email query sent to Pratt & Whitney by this reporter requesting an official statement on the matter, citing allegations from the airlines, went unanswered until the time of going to press.