Go First has been making the headlines everywhere for the last few days. There has been so much going on with this Indian airline and the decision to file for bankruptcy has come as a shock to the aviation industry. The airline has already filed before the National Company Law Tribunal on Tuesday. The news comes just a day after the budget airline filed an application for voluntary insolvency resolution proceedings.
Go First Has Suspended Flight Services
The Indian budget airline filed an application for voluntary insolvency resolution proceedings and cancelled every flight service for 3 days, owing the reason to a severe fund crunch. Go First shared that they are suspending the flight on 3rd, 4th, and 5th May 2023. With the news of suspending flights for three days, they also shared that they will refund the ticket fare of all the passengers. They added that they are doing this because of operational reasons. The suspension of regular flights is temporary at the moment.
Here’s Why The Cash-Strapped Airline Filed For Bankruptcy?
- The airline had to take this unfortunate decision due to so many problems with Geared Turbofan engines. US company Pratt & Whitney provides these engines to the airline.
- Go First stated to the aviation ministry that it cannot meet its financial obligations anymore. According to a report by News 18, the reason that the airline provided for not being in a position to meet financial obligations is Pratt & Whitney. The airline held Pratt & Whitney responsible because of the insufficiency of engines.
Also read: Go First Flights To Mumbai Diverted To Surat. Passengers Stranded For 4 Hrs Inside The Plane
- Kaushik Khona is the CEO of Go First and he shared that they have already grounded 28 aircraft. This number comprises more than half of the airline’s fleet.
- The issues in the availability of the engines by Pratt & Whitney turned out to be a problem for the airline and this led to the fund issues, as shared by the CEO.
- They decided to go with filing for voluntary insolvency resolution proceedings for the company.
Also read: Go First Suspends Flights For 3rd & 4th May Due To Non-Supply Of Engines; Lawsuit Filed
Pratt & Whitney also responded to the allegations and stated that they are committed to the success of their customers and also prioritise their delivery schedules. They decided not to comment further on this.
Cover Image Courtesy: Instagram/ GO FIRST (@gofirstairways)