10 May 2023, 7:25 pm 1 minute
Reuters was first to report the news that a tribunal granted bankruptcy protection to India’s fourth largest airline Go First, bolstering chances of its revival but dealing a blow to lessors. The decision was keenly awaited by global leasing companies in Europe and elsewhere as the ruling now bars them from repossessing dozens of their Airbus A320neo planes from Go First due to a legal moratorium, setting the stage for prolonged court battles.
Go First’s woes will lead to higher lease premiums for Indian airlines. That could prove to be a pain point for the sector at a time when Indian Prime Minister Narendra Modi is touting the country’s emergence as an aviation powerhouse, with bigger rivals IndiGo (INGL.NS) and Tata Group’s Air India expanding aggressively.
Type: Reuters Best
Sectors: Aerospace & Defence
Win Types: Speed
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Major Global Story