Thursday, June 8, 2023

Indian airline Go First files for “insolvency” and suspends all flights

indian airline go firstowned by the Wadia conglomerate, filed the “voluntary” insolvency request on Tuesday and suspended all its scheduled flights starting tomorrow amid a severe shortage of funds caused by problems in its supply chain.

Third airline India’s largest airline blamed its engine supplier, US aeronautical firm Pratt & Whitney, for breaching a agreement and forcing them to ground “approximately half their fleet” in recent months, resulting in severe financial losses, Go First said in a statement.

The lack of use of 25 of its Airbus A320neo aircraft caused losses of US$1.319 billion, according to the low-cost airline, a figure that he intends to recover in a lawsuit against his American partner.

However, he assured that as long as there is no resolution that would allow it to “return to full operation in August/September 2023”, the airline “is no longer in a position to continue to meet its financial obligations”.

This crisis of funds led Go First to apply for bankruptcy on Tuesday before the National Court of Company Law in New Delhi and to suspend all its flights, waiting for the court approve your voluntary insolvency petition on Friday.

The Web page of Go First suffered several falls after the announcement, while numerous users protested on Twitter against the suspension of their flights without prior notice.

The airline operated about twenty routes domestic and several international.

These issues They occur at a time when the Indian air sector is in full expansion, with figures higher than those of the pandemic, which led it to set a historical record in its domestic air traffic on April 30 after registering nearly half a million of passengers that day.

indian airline Air Indiaowned by the Tata group, closed an agreement last February to buy 470 aircraft from Airbus and Boeing, in what became the largest order in the history of commercial aviation.

Some weeks Boeing announced that it would install a line in India to transform its ‘737’ passenger planes into freighters.


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