As per a report in the Economic Times, Go First, owned by the Wadia group, has announced the suspension of flights for May 3 and 4, due to pending dues of oil marketing companies.
Furthermore, the Indian low-cost carrier has stopped taking new ticket bookings for the 3rd, 4th, and 5th of May.
The airline’s cash flow has been seriously affected, as more than half of its fleet has been grounded due to recurrent issues and non-supply of engines from Pratt & Whitney engines, which powers its Airbus A320 neo aircraft.
Looking for a Strategic Investor
The Wadia group-owned airline is currently looking for a strategic investor in the company and is in talks with potential investors. Industry insiders say that the airline has been struggling financially for some time and is now in cash-and-carry mode, meaning it has to pay daily for the number of flights it wants to operate.
Emergency Petition Against Pratt & Whitney
Simultaneously, the airline has filed a lawsuit in Delaware federal court against the US-based engine manufacturer, seeking enforcement of an arbitral award. The award requests that Pratt & Whitney supply the airline with engines, failing which the airline may be forced to shut down.
According to the March 30 arbitration award, there was a risk of irreparable harm if emergency engines were not provided.
30 Aircraft Grounded Due to Lease Payments
Due to Pratt & Whitney engine issues, nearly half of the airline’s fleet has been grounded, which has caused serious problems for the company.
According to industry officials, Go First had 30 aircraft grounded as of March 31, including nine on which lease payments were due. According to the airline’s website, it has 61 aircraft in its fleet, including 56 A320neos and five A320ceos.
According to reports, the grounding of its fleet has significantly impacted Go First’s cash flow.