A holding company owned by the Wadia Group, owners of Go First (GOW, Mumbai International), has made a provision of INR18.66 billion rupees (USD225.6 million) in its accounts after the airline suspended operations earlier this month.
The Bombay Burmah Trading Corporation Limited (BBTCL) announced the provision in a May 29 filing to the Bombay Stock Exchange (BSE). The provision relates to Go First, which BBTCL has invested in since 2005, and other "strategic investments across various businesses and geographies to enhance shareholder value."
The provision covers BBTCL's entire exposure to Go First up until March 31, 2023. Excluded is another INR2.9 billion (USD35.06 million) provided since then. BBTCL, along with subsidiaries, owns 32.61% of Go Airlines Ltd, the company that runs Go First.
Meanwhile, the same outlet reports that Go First has engaged with India's Directorate General of Civil Aviation (DGCA) to formulate a restart plan after that agency ordered one late last week. Go First officials reportedly met with the DGCA on May 29. Later on the same day, Go First also pushed back any resumption of services until June 4. "As you are aware, the company has filed an application for immediate resolution and revival of operations," an advisory on its website reads.
