Go First Airlines, an ultra-low-cost carrier, has filed for voluntary insolvency resolution proceedings on Tuesday. As a result, it has cancelled flights and bookings for the next three days. The airline is facing several problems, including liabilities of nearly ₹9,000 crores. The airline attributes its insolvency plea to the “serial failure” of Pratt & Whitney engines that have caused 50% of its fleet to be grounded. Due to this situation, Go First is unable to meet its financial obligations and has no choice but to file for insolvency. Despite the surge in domestic air traffic, the airline is struggling with engine supply woes and an uncertain future. In the upcoming months, stakeholders, authorities and passengers will face several issues as they navigate through this turbulent period.
- Ultra-low-cost carrier Go First Airlines has sought voluntary insolvency resolution proceedings, cancelling flights and bookings for the next three days.
- The airline cites the “serial failure” of Pratt & Whitney engines resulting in the grounding of 50% of the fleet as the reason behind its insolvency plea.
- Go First remains constrained by a shortage of engines for its brand-new Airbus SE A320neo jets.
- A ₹600 crore loan expected to come to fruition is yet to be received.
- The airline has been unable to launch an initial public offering due to the COVID-19 pandemic.
- Go First has found itself at the received end of DGCA notices, fines and cancellations, incurring financial penalties as well as growing ill will among passengers.