Go First airline counters at Delhi Airport turned deserted as the beleaguered airline on 2 May filed for bankruptcy at the National Company Law Tribunal (NCLT). Besides, Go First has also cancelled flight operations for the next three days ( May 3, 4, and 5) over mounting losses
The Wadia Group-backed Go First has blamed Pratt & Whitney engines for grounding about half its fleet of Airbus aircraft at a time when demand for travel is soaring.
A Go First official said the airline is facing a financial crunch due to the non-supply of engines by US-based jet engines manufacturer Pratt and Whitney (P&W) that has forced the grounding of more than 50 planes. The debt-laden airline said also said that Pratt refused to comply with an award issued by an emergency arbitrator to provide the carrier with at least 10 usable engines by 27 April, and an additional 10 a month until December 2023.
Pratt & Whitney responded saying that it’s complying with the arbitration ruling.
“Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritize delivery schedules for all customers," the company said.
Go First is majority owned by billionaire Nusli Wadia’s Wadia Group, which also controls cookie maker Britannia Industries Ltd. and textile maker Bombay Dyeing and Manufacturing Co. According to the website, it operated a fleet of 59 aircraft, including 54 A320nos, and flies to 34 cities, including seven international destinations.
History of turbulency in India's aviation market:
India has been a notoriously tough market for airlines, with its cutthroat fare war that has killed high-profile airlines like Jet Airways India Ltd. and beer tycoon Vijay Mallya’s Kingfisher Airlines Ltd. Low-cost carrier IndiGo, controlled by Interglobe Aviation Ltd., now controls more than a half of the local market, luring passengers with cheap, no-frills and on-time flights.
DGCA's notice to Go First:
The Directorate General of Civil Aviation (DGCA) today issued a show cause notice to the low-cost carrier for not providing prior intimation of cancellation of flights on May 3 and May 4 to DGCA. DGCA has sought a reply from Go First Airlines within the next 24 hours of the issuance of the show cause notice.
