Abstract: Go First, an ambitious low-cost airline operating in India’s highly competitive aviation industry, ceased operations in May 2023, leaving employees, passengers, and creditors in distress. The airline faced persistent operational disruptions, including engine supply issues, along with mounting financial pressures. The withdrawal of its proposed Initial Public Offering (IPO) further constrained access to equity capital. This teaching case examines Go First’s cash flow position and analyzes how liquidity stress, financing structure, and external shocks contributed to the airline’s eventual failure.

Learning Objectives

After discussing this case, students should be able to:
• Analyze the components of a cash flow statement to assess a firm’s financial health.
• Identify early warning signals of financial distress and liquidity crises.
• Evaluate the role of financing structure and risk management in capital-intensive industries such as aviation.