“Go First” has filed for bankruptcy with the National Company Law Tribunal in Delhi. Billionaire Nusli Wadia is blaming US engine maker Pratt & Whitney for the situation.
Go Airlines, founded by billionaire Nusli Wadia, filed for bankruptcy on Tuesday with the low-cost carrier blaming US engine-maker Pratt & Whitney for grounding half of its fleet. Rechristened Go First last May, the airline that started flying in 2005 becomes the first Wadia Croup entity to declare bankruptcy in its 287-year history and the third major airline to collapse since 2012 after Kingfisher and Jet.
The bankruptcy application, once admitted by the National Company Law Tribunal Delhi, will see Wadia, his son Ness Wadia, airline chairman Varun Berry and other board members as well as the management cede control to a resolution professional appointed by the forum.
The airline suspended all its flights from Wednesday to Friday (May 3 to 5) amid massive travel demand in India with domestic traffic touching new highs since earlier this year. With an average of 30,000 daily domestic flyers this March, the move may affect about 90,000 people booked to fly Co First.
Even as the DGCA has issued show-cause notice to Go First for suspension of operations for 3 days, it has also sought its “plan of action to operate flights as per
approved schedule from May (6), 2023.” Civil aviation minister Jyotiraditya Scindia said “it’s incumbent upon the airline to make alternative travel arrangements for passengers so that inconvenience is minimal”.
On its website, Go First said: “…due to operational reasons, Co First flights scheduled for May 3, 4 and 5, 2023 have been cancelled… A full refund will be issued to the original mode of payment shortly.. committed to providing all the assistance we can!”
According to reports, Vice Media is preparing to file for bankruptcy after struggling to find a buyer.
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