Airline has filed for bankruptcy, blames engine supplier Pratt & Whitney for cash crunch
Accumulated losses at Go First go beyond net worth of other group firms
(Reuters) - Cash-strapped Indian airline Go Airlines (India) Ltd, recently rebranded as Go First and previously as Go Air, filed for bankruptcy on Tuesday, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet.
Some pilots of troubled airline have joined airlines in West Asia in recent weeks and others have approached IndiGo
Apart from IndiGo, Tata group-owned Air India, could be the second key beneficiary given its strong fleet and balance-sheet strength
Go First chief Kaushik Khona has told employees that the airline has been crippled by recurring Pratt & Whitney engine troubles and assured that the carrier is doing everything possible to navigate the situation with utmost care and concern for all staff. The no-frills carrier has filed an application for voluntary insolvency proceedings and has also cancelled all its flights for three days starting Wednesday. In a message to employees late on Tuesday, Khona said that a terrible crisis has been created by Pratt & Whitney's failure to supply engines. For more than 12 months, the airline's management has tried their level best to convince P&W to provide spare engines, repair engines. However, P&W has been stonewalling the discussions, the CEO said, adding that it moved Emergency Arbitration in Singapore. According to the airline, the arbitrator ordered P&W to supply at least 10 serviceable spare leased engines by April 27 and a further 10 spare leased engines per ...
Three flights diverted from Mumbai eventually return after getting clearance to land
As of April 30, the company had not defaulted on any of these dues, Go First said in a filing
Shares of India's largest airline IndiGo rose by more than 8% on Wednesday, a day after cash-strapped airline Go First filed for bankruptcy, blaming "faulty" Pratt & Whitney engines
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Lenders were not aware of the airline's plans to file for voluntary insolvency and will meet soon to take stock of the situation, the report said
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