New Delhi: Facing severe cash crunch, Wadia group-owned budget carrier Go First has filed an application with the National Company Law Tribunal (NCLT) for resolution under Insolvency and Bankruptcy Code (IBC).
The airline said it was forced to take the step due to the ever-increasing number of failing engines supplied by Pratt & Whitney’s International Aero Engines, LLC.
"More precisely, Go First has been forced to apply to the NCLT after Pratt & Whitney, the exclusive engine supplier for Go First’s Airbus A320neo aircraft fleet, refused to comply with an award issued by an emergency arbitrator appointed in accordance with the 2016 Arbitration Rules of the Singapore International Arbitration Centre (SIAC)," the airline said.
Go First on Tuesday announced cancellation of its flights scheduled for 3rd, 4th and 5th May 2023 citing operational reasons. On approaching NCLT, the airline said that the move is aimed at protecting the interests of all stakeholders.
"It has been forced to take this step despite the infusion of substantial funds to the tune of Rs 3,200 crores by the promoters into the airline in the last three years, Rs 2400 crores of which were injected in the last 24 months, and Rs 290 crores in April 2023 alone. This brings the total promoter investment in the airline since its inception to approximately Rs 6,500 crores," a media release from low-cost carrier said.
The airline noted that it has also received significant support from the Government of India’s exceptional Emergency Credit Line Guarantee Scheme, for which it is extremely grateful. (UNI)
