Indian low-cost airline Go First has canceled all flights for the next three days after filing for bankruptcy protection.
The carrier says affected customers “will receive a full refund”.
It is the country’s first major airline to file for bankruptcy since Jet Airways went bust in 2019.
Go First accused US engine manufacturer Pratt & Whitney of grounding many of its planes, which it says has caused a serious liquidity problem.
The company “was forced to take this step due to Pratt & Whitney’s ever-increasing number of failed engines,” Go First said in a statement.
Go First said the problem forced it to ground 25 planes – about half of its fleet of Airbus A320neo planes – causing about 108 billion rupees (£1 billion; $1.3 billion) in revenue and expenses .
The airline also accused Pratt & Whitney of failing to comply with an emergency arbitrator’s order that included the delivery of “at least 10 serviceable leased spare engines by April 27, 2023.”
In response, Pratt & Whitney said it “complied with the March 2023 arbitration award” and could not comment further as “this is now a litigation.”
India’s Civil Aviation Minister Jyotiraditya Scindia said: “The Indian government has supported the airline in every way possible.”
The collapse of Go First, owned by Indian conglomerate Wadia Group, underscores the fierce competition in the country’s airline sector.
In November, the country’s second and third largest airlines – Air India and Vistara – announced their intention to merge.
In 2019, Jet Airways, then one of India’s largest airlines, was grounded after struggling with more than $1bn (£800m) in debt.
Due to lengthy insolvency proceedings, operations have not yet been resumed.
Additional reporting by Archana Shukla
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