Go First Airlines, part of the Wadia Group, has suspended all flight bookings until May 15 due to financial difficulties. Flights until May 9 have also been cancelled. The company has asked the National Company Law Tribunal (NCLT) to declare it bankrupt. The Directorate General of Civil Aviation (DGCA) has ordered the airline to refund passengers’ money for cancelled flights.
Go First is experiencing a cash crunch because Pratt & Whitney (PW), the aircraft engine manufacturer, did not deliver engines on time. This has grounded over half of the airline’s aircraft. The company is also struggling due to cancelled flights and a shortage of funds for fuel. Reports suggest that the bank has given Go First a loan facility of Rs 4,500 to 5,000 crore. The airline has listed liabilities of Rs 6,521 crore in its bankruptcy application. The company has applied to the NCLT for a settlement procedure.