Another Indian airline owned by a millionaire is on the verge of collapse, having attempted and so far failed to find a savior after filing for bankruptcy in May. The prospects for Go Airlines India Ltd. are dwindling. Chief Executive Officer Kaushik Khona resigned at the end of November, claiming he couldn't get the airline back in the air and that employees hadn't been paid in six months. Flight attendants and pilots are looking for new jobs.

Meanwhile, Jindal Power Ltd., Go's single potential buyer under the insolvency process, has decided not to bid. According to local media, Jindal was unable to appraise Go's value because it is unknown how many planes it will have after the aviation authority indicated that its aircraft should be returned to lessors.

Jindal did not reply to demands for comment either 

If Go goes bankrupt, it will be the 12th Indian airline to fail this century, despite serving a large and increasingly mobile population. Go's supporters discussed the difficulty of running with unreasonably high costs, particularly on fuel, while yet offering low-cost rates.

What Comes Next?   

According to Sandeep Bajaj, a lawyer who represented several operational creditors in Jet Airways India Ltd's insolvency case, Go's creditors, which include the state-run Central Bank of India, Bank of Baroda, and Deutsche Bank AG, may sell assets piecemeal. As of April, Go owed financial creditors approximately 65 billion rupees ($780 million), and its overall liabilities were 115 billion rupees.

"The resolution process isn't going anywhere," Bajaj added. "The company is already at the point where liquidation is required," he stated, because closed businesses are rarely recovered.   

According to Harsh Vardhan, head of New Delhi-based Starair Consulting, grounded airlines may lose landing and parking spots, workers, planes, licences, and International Air Transport Association-assigned codes used for schedules and tickets. According to Vardhan, new owners must settle outstanding debts owed to travel brokers, passengers, equipment suppliers, and employees. "I don't see it getting revived." 

The India Attraction  

With a combined market share of 73%, the country's two largest carriers, IndiGo and a revitalized Air India Ltd., are strengthening their grip. This year, they placed a record number of orders for new aircraft from Airbus and Boeing Co.