Indian airline Go First has canceled all of its flights. image source: GETTY IMAGES
Following its bankruptcy filing, the low-cost Indian airline Go First has canceled all of its flights for the ensuing three days.
Go First has stated that it will issue full refunds to all customers affected by the flight cancellations.
The airline’s decision to file for bankruptcy was due to financial difficulties caused by the COVID-19 pandemic, compounded by issues with the engines of its Airbus A320neo planes, which were supplied by US engine manufacturer Pratt & Whitney.
According to Go First, problems with the engines forced the airline to ground 25 aircraft, which account for approximately half of its fleet, leading to a significant loss of revenue and expenses of around 108 billion rupees (£1 billion; $1.3 billion).
The airline has blamed Pratt & Whitney for the engine issues, which it says resulted in a severe cash flow problem that ultimately led to the bankruptcy filing.
This makes Go First the first major airline in India to declare bankruptcy since Jet Airways did so in 2019. The airline has stated that it will work on a revival plan to resume operations as soon as possible.
Following its bankruptcy filing. Image source: GO FIRST
The airline made a charge against Pratt & Whitney, asserting that the business disobeyed a court order requiring it to deliver “at least 10 serviceable spare leased engines by 27 April 2023.
” Contrarily, Pratt & Whitney indicated that it was “adhering to the March 2023 arbitration ruling” and was unable to make any more comments since “the matter is now subject to legal action.”
Jyotiraditya Scindia, India’s minister of civil aviation, claimed that the Indian government has been helping the airline in every way possible.
This coincides with the collapse of Go First, an Indian conglomerate controlled by Wadia Group, underscoring the fierce rivalry in India’s airline sector.
Air India and Vistara, two of the biggest airlines in the nation, declared their intention to merge in November.
One of India’s main airlines, Jet Airways, was forced to suspend operations in 2019 as a result of its growing debt of over $1 billion (£ 800 million), and it has since been unable to do so due to the drawn-out insolvency process it is currently dealing with.