Go First's CEO, Kaushik Khona, said on Tuesday the airline has filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal NCLT. The airline has been having problems due to pending dues to oil marketing companies.
CEO Khona told PTI the airline has been experiencing financial problems due to Pratt Whitney's non-supply of engines that forced the grounding of 28 of its planes. The airline is now seeking an investor to resume domestic operations. Tickets of cancelled flights are to be refunded in due process, the airline told Business Today TV.
Several of Go First's vehicles have been destroyed due to recurring problems and non-supply of engines from Pratt Whitney. The company uses engines to propel the Airbus A 320 neo aircraft.
It is an unfortunate decision filing for voluntary insolvency resolution proceedings, but it had to be done to protect the interests of the company, Khona said.
The airline has told the government about the developments and will also submit a detailed report to the air regulator, the directorate General of Civil Aviation DGCA, as per PTI.
The airline's market share also fell too, from 8.4 per cent in January to 6.9 per cent in March, according to DGCA data. Go First posted its biggest annual loss in fiscal 2022 and has been grappling with operational problems in the past few months.
Go First wants to raise funds. Wadia Group, which runs textiles maker Bombay Dyeing Manufacturing Co Ltd, is reportedly in talks to either sell a majority share or leave the company.
The airline has sued Pratt Whitney in a federal court in the United States to make the company supply the engines to Go First.