Sameer Ranjan Sarmah

Is Go First's bankruptcy a negative event? Or they can use it as a brilliant business strategy to re-enter the market. Here's how bankruptcy can facilitate a return to business: 1) Resolution: In the case of Go First, the aircraft lessors are unable to seize its fleet of flights. Thus, it can use bankruptcy to save its aircraft. 2) Debt Restructuring: The airline can leverage the position of the bank to restructure its debt. Due to debt restructuring, Delta Airlines saved $9.3 billion, Northwest Airlines saved $4.2 billion, and American Airlines saved $8 billion when it declared bankruptcy. 3) Emergency Assistance for Operations: In the case of Go First, this can assist them in paying their staff, upper management, and the rent for their most valuable assets, allowing them to return to business. Go First may also request that creditors pay a portion of their bills with new loans. To summarise, bankruptcy could help in achieving 4 unreal benefits- 1) Keep the planes without paying the lessor. 2) Get more loans without any EMI for the previous loans for 270 days. 3) Can use these new loans to pay for the important members of the company. 4) Can use this 270 days of time to sue "Prat & Whitney".    If Go First wins the case against "Prat & Whitney", they will get $1.1 billion, which they can use easily to pay back debt, recover losses, and get back into business. Thanks to Think School and Ganeshprasad S for the insights. #business #mbastudent #india #pgdm #iim #iit #aviation

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I am delighted to inform that I have been accepted to the HPAIR 2021 Asia Conference.