New Delhi, May 2: Airline with the shortage of funds, Go First’s CEO Kaushik Khona announced that the company had submitted a request for voluntary insolvency resolution procedures before the National Company Law Tribunal (NCLT).
Flights operated by Go First will also be cancelled for three days on May 3, 4, and 5, said Khona.
According to Kaushik Khona, the Wadia group-owned airline has grounded about 28 aircraft, or more than half of its fleet, since Pratt and Whitney (P&W) hasn’t supplied any engines. Consequently, there is a financial crisis.
P&W has been sued by Go First in a US federal court in an effort to uphold an arbitration decision ordering the engine manufacturer to provide the airline.
According to the most recent data from the Indian aviation regulator, the grounded flights caused Go First’s market share to decrease from 8.4% in January to 6.9% in March.
In fiscal 2022, the airline reported its largest yearly loss.
“It is an unfortunate decision (filing for voluntary insolvency resolution proceedings) but it had to be done to protect the interests of the company,” said Khona.
The airline has notified the government of the events and will provide a thorough report to the Directorate General of Civil Aviation (DGCA), which oversees aviation safety.
Flights will resume after the NCLT approves the application, according to Khona. Notably, Go First employs around 5,000 people.
After news broke that Wadia Group was in negotiations to sell a majority stake or completely sell its holdings in the airline, Go First was reportedly looking to raise money.
Another Indian airline, Go First, is in serious financial trouble and on the verge of collapsing. Jet Airways experienced a similar destiny a few years ago as a result of its financial struggles.
