• Wadia group owned Go Air cancels all flights and files for bankruptcy

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    Wadia group owned Go Air cancels all flights and files for bankruptcy

    He noted that the airline was also attempting to interact with lessors in order to deter them from taking any action.

    Digital Desk: A day after GoFirst declared bankruptcy, its
    CEO stated unequivocally that the company's owner, Wadia Group, had no
    intention of selling the airline and is fully committed to it.



    Go First filed for bankruptcy after grounding nearly half of
    its fleet due to "faulty" Pratt & Whitney (P&W) engines. The
    fundamental reason for filing for insolvency was to resurrect the airline
    rather than sell it, Go First CEO Kaushik Khona told Reuters on Wednesday. He
    further stated that all payments had been made to Pratt & Whitney.



    He noted that the airline was also attempting to interact
    with lessors in order to deter them from taking any action.



    Go First, India's fifth largest budget airline, declared
    bankruptcy on Tuesday. Until March, the company held approximately 6.9 percent
    of the market. The current financial issue is the result of a disagreement
    between Go First and its sole engine supplier for its Airbus A320 neo fleet.



    Go First claimed in a statement on Tuesday that its bankruptcy
    was necessary owing to a "increasing number of failing engines supplied by
    Pratt & Whitney's International Aero Engines," which had resulted in
    the grounding of 25 aircraft.



    Pratt & Whitney was accused
    by the firm of failing to comply with an arbitration ruling mandating it to
    release spare leased engines.



    Passengers who had booked their Go First flights are
    encountering problems, as the airline had cancelled flights scheduled from May
    3 to May 5 for 'operational reasons'.



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    Jyotiraditya Scindia, the civil aviation minister, has stated
    that the government will provide Go First with all available help.



    Notably, this is India's first major airline failure since Jet
    Airways in 2019. The recent merging of Tata-owned airlines, such as Air India
    and Vistara, under the Tata group has heightened competitiveness in India's
    airline business.



    Jet
    Airways, which had grown to become one of India's top airlines, went bankrupt
    in 2019 with $1.2 billion in debt. The corporation ended up laying off 20,000
    workers. Kingfisher Airlines went bankrupt in 2012 after failing to repay
    millions of dollars in loans to state-owned banks. Vijay Mallya, the company's
    owner, has fled India and is facing financial fraud allegations.








     

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