Go First, a domestic airlines, earlier known as GoAir, on Tuesday has cancelled all May 3 and 4 flights and has filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal in Delhi, chief executive officer Kaushik Khona told news agency PTI. He said, “It is an unfortunate decision… but it had to be done to protect the interests of the company.”
“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 more than half of its fleet…”
Go First operates on a cash-and-carry model – which means it pays oil marketing companies daily for each flight it operates – and currently lacks funds to pay OMCs their dues.
According to Khona, “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.”
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.