In a shock announcement, the Go First Airlines, owned by Wadia-group, said it is cancelling all its flights for two days in view of fund shortage. The decision shocked the airline’s passengers who had booked tickets for their scheduled destination.
What prompted Flight cancellation announcement
The airline’s half of the fleet is grounded due to shortage of spare parts and engines that the airline blames on US engine maker Pratt & Whitney (P&W). The airline also said it has grounded it half of the fleet due to P&W ‘faulty’ engines. The latest development marks the first major collapse of an airline in India after the failure of Jet Airways. The now defunct airline collapsed in 2019 leaving thousands of employees in lurch.
Ever increasing Engine Failures
In a statement, the airline said that it was forced to take the step due to the ‘ever-increasing’ number of failing engines supplied by Pratt & Whitney’s International Aero Engines. The company has grounded 28 planes and this has resulted in a fund crunch, said company CEO Kaushik Khona. The airline currently employees nearly 5,000 people.
DGCA notice to Go First
Even as the events unfolded, the Directorate General of Civil Aviation (DGCA) issued a notice to the airline over the sudden suspension of flights. The aviation regulator has asked the airline to file a response with in 24 hours. The DGCA in its notice told the airline that airline failed to adhere to the approved schedule and caused passenger inconvenience leading to non-compliance. The regulator asked the airline as to why action should not be taken against it for violation.
Go First Bankruptcy filing
The company on Tuesday also announced that it has filed for bankruptcy proceedings with the National Company Law Tribunal. The airline claimed it can’t met the financial obligations. The company in its filing said that that Pratt & Whitney refused to release engine orders making it difficult for them to operate half of the fleet, said CEO Kaushik Khona. Pratt & Whitney is the sole supplier of engines for Airbus A320neo aircraft fleet operated by Go First.
Aviation Minister Jyotiraditya Scindia’s assurance
Civil Aviation Minister Jyotiraditya Scindia said the airline was being helped in all possible manner. He said the issue has been taken up with the stakeholders involved. Scindia also asked the airline to make appropriate arrangements so that the passengers not inconvenience.
NCLT reserves order on plea seeking interim moratorium
Go First Airlines, which filed for bankruptcy on Tuesday, announced that its flight operations will remain cancelled from May 3 to May 5 adding that a full refund will be issued to the passengers. However, some reports suggest that flight operations may remain suspended till May 15. The Wadia group-owned carrier has also moved the National Company Law Tribunal, seeking voluntary insolvency resolution proceedings. “Go First is facing financial crunch due to non-supply of engines by US-based jet engines manufacturer Pratt and Whitney (P&W) that has forced grounding more than 50 planes,” a Go First official told ANI.