Winning Bizness Desk
Mumbai. After Go First airliner went bankrupt, another airline is on the verge of following the same situation. According to the reports, one more airline Spicejet in the country will be going through the bankruptcy process. The National Company Law Tribunal (NCLT) will next week hear the insolvency petition filed by creditors of SpiceJet. Aircraft Lessor Aircastle (Ireland) Limited, a lender to low-cost airline SpiceJet, has filed an application with the NCLT to initiate insolvency resolution proceedings. The application was filed on April 28. According to the information available on the NCLT website, the main bench of the tribunal will hear the application very soon.
GoFirst has filed for insolvency resolution proceedings on its own
Earlier, GoFirst, an airline owned by the Wadia group, had filed an application with the NCLT to initiate insolvency proceedings on its own. GoFirst has filed this application after facing financial crisis, which NCLT has reserved its decision after hearing it. After filing for bankruptcy, a SpiceJet spokesperson said, "This development will not have any impact on the airline's operations. In a statement, the spokesperson expressed hope that the matter will be resolved out of court. It also said that currently none of the debtor's aircraft is part of the airline's fleet. All aircraft belonging to the leasing firm have already been returned." Meanwhile, two other petitions related to initiation of insolvency proceedings against SpiceJet are pending, according to information available on NCLT's website.
GoFirst canceled all its flights till May 9
The bankruptcy petition was filed by Willis Lease Finance Corporation on April 12, while Acres Buildwell Pvt Ltd filed on February 4. There was no immediate response from SpiceJet regarding both these petitions. Faced with financial crisis, GoFirst Airlines has now canceled all its flights till May 9. Airline has given this information through Twitter. GoFirst has said it has canceled its flights till May 9, 2023 due to operational reasons. The airline has expressed regret for the inconvenience caused to passengers due to the cancellation of flights. The airlines said that the full refund will be issued to the passengers through the original mode of payment soon.