Cash-strapped airline Go First has filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal, informed the company's CEO Kaushik Khona.Go First flights will also be suspended for three days – May 3, 4 and 5 – as it has been facing a severe fund crunch, Khona told news agency PTI.Kaushik Khona said the Wadia group-owned airline has grounded around 28 planes, which make up more than half of its fleet, due to the non-supply of engines by Pratt and Whitney (P&W). This has resulted in a fund crunch.
Go First has sued P&W in US federal court, seeking to enforce an arbitral award that asks the engine maker to supply the airline.The grounded flights have led to Go First's market share falling to 6.9 per cent in March from 8.4 per cent in January, according to the latest data from the Indian aviation regulator. It is an unfortunate decision... but it had to be done to protect the interests of the company," he said, "Go First is facing a financial crunch due to non-supply of engines by Pratt & Whitney, which has forced the company to ground 28 planes, which is over half of its fleet."
The airline - which employs over 3,000 people - has already informed the government and will submit a detailed report to the Directorate General of Civil Aviation, while suspended flights will resume only after its insolvency application is admitted, Khona told PTI.In a lengthy statement Tuesday afternoon, Go First said it 'had to take this step due to the ever-increasing number of failing engines' supplied by American manufacturer Pratt & Whitney. The airline said these failures had led to the grounding of 25 aircraft as of May 1. The cash-strapped airline has been struggling to raise funds since posting its biggest annual loss in fiscal 2022. Last month Reuters reported owners Wadia Group were in talks with strategic partners to either sell a majority stake or completely exit the loss-making firm.