WADIA GROUP-CONTROLLED GO FIRST has filed for insolvency proceedings with the National Company Law Tribunal (NCLT), blaming US-based Pratt & Whitney (P&W) engines for the grounding of about half its 50-strong fleet.
The insolvency filing marks the first major airline collapse in the country since Jet Airways filed for bankruptcy in 2019.
Earlier in the day, the troubled low-cost airline suspended all flights for May 3 and May 4 amid a severe fund crunch. The move invited a show-cause notice from the Director General of Civil Aviation as to why action should not be initiated for violation of Aircraft Rules 1937.
The government seems to have taken a sympathetic view of the airline's woes. Civil aviation minister Jyotiraditya Scindia said it was unfortunate that the "operational bottleneck issue has dealt a blow to the airline's financial position" and that it was "prudent to wait for the judicial process to run its course".
Scindia said the government has been assisting the airline in every possible manner and the matter has been taken up with the stakeholders involved. He advised Go First to make alternative travel arrangements for passengers, so that inconvenience was minimal.
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