LIVE UPDATES
Go First crisis LIVE updates: NCLT to hear insolvency plea on May 4
3 min read . Updated: 03 May 2023, 05:39 PM IST
PremiumGo First Airlines announced that its flight operations will remain cancelled from May 3 to May 5 adding that a full refund will be issued to the passengers. The Wadia group-owned carrier has also moved the National Company Law Tribunal, seeking voluntary insolvency resolution proceedings.
"Go First is facing financial crunch due to non-supply of engines by US-based jet engines manufacturer Pratt and Whitney (P&W) that has forced grounding more than 50 planes," a Go First official told ANI.
Here are the latest updates:
03 May 2023, 05:39:19 PM IST
Airline has owner, govt support, says CEO
“The Indian government is very keen we should not fail," Kaushik Khona said.
03 May 2023, 05:08:17 PM IST
Last developments in Go First insolvency crisis:
- About half of Go First’s brand-new Airbus fleet is grounded as the planes await engine parts from Pratt & Whitney.
- The company has filed for voluntary insolvency resolution proceedings and decided to cancel flights for three days starting May 3.
- Go First airlines' lenders likely to meet on Wednesday to discuss future course of action in bankruptcy filing.
- NCLT is slated to hear the insolvency plea on May 4.
- Aviation stocks rally, shares of InterGlobe Aviation (parent of IndiGo, SpiceJet) jump on Wednesday.
03 May 2023, 04:58:02 PM IST
What can Go First customers do now?
Several people took to social media on Wednesday amid growing concerns about high re-booking costs. According to Ajay Awtaney, the founder of frequent flier website LiveFromALounge.com, options are rather limited for travellers. People can either rebook on other airlines and pay a fee to cancel their Go First tickets, or they can wait for their flights to be canceled and get a full refund.
“In the short run, I’d expect airfares to go up even further for now given that all airlines are operating at 90% and only the last few seats are available on the plane. It doesn’t look like the airline will be operating anytime shortly," he said.
03 May 2023, 04:46:24 PM IST
How much does Go First owe?
According to its filing with the NCLT, it owes financial creditors ₹65.21 billion ($798 million), and has now “exhausted all financial resources". The airline's total liabilities to all creditors stand at ₹114.63 billion. This includes dues to banks, financial institutions, vendors and aircraft lessors.
03 May 2023, 04:39:40 PM IST
One domestic airline on average went belly up every year in the past 3 decades
One scheduled airline on an average has gone out of business every year since private airlines took to the skies nearly three decades ago, with Wadia group-owned Go First being the latest carrier battling financial turbulence for survival.
03 May 2023, 04:34:25 PM IST
Go First owner has no plans to exit airline
India's Wadia Group, the owner of cash-strapped Go Airlines (India) Ltd, is completely committed to the company, and has no plans to exit it, the airline's chief executive told Reuters on Wednesday.
03 May 2023, 04:09:26 PM IST
Flyers left stranded at Delhi airport
Flyers of Go First were stranded at Delhi airport on Wednesday as the airline failed to inform passengers about the cancellation of flights. The counters of the budget airline, owned by the Wadia Group, wore a deserted look on Wednesday morning. Passengers flocked to other counters to find fares of other airlines, surged to exorbitant amounts, amid the crisis.
03 May 2023, 04:02:43 PM IST
India's Go First Airways owes financial creditors $798 million, says filing
Indian budget carrier Go Airlines (India) Ltd owes financial creditors 65.21 billion rupees ($798 million). The company had not defaulted on any of these dues as of April 30, it said in the bankruptcy filing seen by Reuters.
03 May 2023, 03:34:07 PM IST
‘Go First doing everything possible’: CEO
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.
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 month until December 2023.
"With that, the airline would have had all its A320 neo aircraft operational by August/ September 2023... unfortunately, Pratt & Whitney has chosen to defy the order from the Emergency Arbitrator," Khona said.
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!