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Go First Goes Bankrupt: The country’s leading domestic airline GoFirst is on the verge of bankruptcy. The company has applied for insolvency in NCLT. Company’s CEO Kaushik Khona told that the company has applied in NCLT under the bankruptcy process.
The CEO said that the company is facing financial crisis. The reason for this is not giving the supply of P&W engines on time. Because of this we have to ground 28 airplanes. On May 3 and 4, the airline has suspended its flight service.
Wadia Group-owned low-cost airline GoFirst will temporarily suspend its flights on May 3 and 4 due to severe cash crunch. Airline chief Kaushik Khona gave this information.
Along with this, the airline has also applied for voluntary insolvency resolution process in the Delhi bench of the National Company Law Tribunal (NCLT). Khona said the airline had to ground more than half of its fleet, ie 28 aircraft, due to non-supply of engines from Pratt & Whitney (P&W). Because of this, a cash crunch has arisen in front of the airline. He said, applying for insolvency resolution is an unfortunate decision but it was necessary to do so to protect the interests of the company.
The airline has also informed the government about these developments. Along with this, she is going to submit a detailed report in this regard to the Directorate General of Civil Aviation (DGCA). Khona said that the airline’s flights would remain suspended on May 3 and 4. After that the flight operations will resume. GoFirst has over 5,000 employees.
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