Go First airlines has filed for insolvency at NCLT: CEO Kaushik Khona
Wadia Group’s flagship venture Go First on Tuesday announced suspension of its operations
In a sudden development, Wadia group’s flagship company Go First on Tuesday announced that it has filed for voluntary insolvency at National Company Law Tribunal (NCLT).
CEO Kaushik Khona made an announcement in this regard, news agency PTI reported. “Go First is suspending flights due to a severe funding crunch,” Khona told PTI.
The cash-strapped firm also suspended all its flights for May 3 and 4 reportedly due to cash flow woes.
According to the company's website, “With one of the youngest fleets in the world made up entirely of 57 state-of-the-art Airbus A320 aircraft, Go First flies to 31 domestic and 10 international destinations with over 200 flights daily.”
The airline’s cash flow has been seriously hit as it has grounded more than half of its fleet due recurrent issues and non-supply of engines from Pratt & Whitney engines which powers its Airbus A320 neo aircraft, industry sources said.
Go First has reportedly filed an emergency petition against Pratt & Whitney in a US court over non-supply of engines, on Tuesday. According to reports, the airline has claimed that it will go bankrupt if engines are not supplied soon.
Meanwhile, aviation regulator DGCA has issued show-cause notice to Go First for cancelling flights.
