Go First Bankruptcy: Wadia Group Not Planning To Exit, Some People Have Shown Interest, Says Airline CEO

CEO Kaushik Khona said that Go First is "continuously evaluating options" and some parties have expressed interest in the airline

Go First CEO Kaushik Khona said that the insolvency proceedings were aimed at reviving the airline and not selling it. 

Go First Airlines' CEO Kaushik Khona has said that the owner Wadia Group is completely committed to the airline and is not planning to exit. In an interview with the news agency Reuters, Khona said that the insolvency proceedings were aimed at reviving the airline and not selling it. 

The comment comes after Go First filed for bankruptcy with the National Company Law Tribunal (NCLT) on Tuesday. The airline blamed Pratt & Whitney engines for grounding about half its fleet. The aviation regulator Directorate General of Civil Aviation (DGCA) has issued a show cause notice to the airline for cancelling all its flights for three  days amid a severe financial crunch.

Kaushik Khona told the news agency that the company is "continuously evaluating options" and some parties have expressed interest in the airline. Adding that, "The government is very keen we should not fail."

Civil Aviation Minister Jyotiraditya Scindia on Tuesday said that Go First has been faced with critical supply chain issues with regard to their engines and that the government has been assisting the airline in every possible manner.

The development marks the collapse of another airline in India after the failure of Jet Airways. Jet Airways has been grounded since 2019 due to financial issues.

The company has said that Go First's had to file for bankruptcy after Pratt & Whitney, the exclusive engine supplier for the airline's Airbus A320neo aircraft fleet, refused to comply with an order to release engines to the airline that would have allowed it to return to full operations.

"...in the absence of Pratt & Whitney not providing the required number of spare leased engines in accordance with the order issued by the emergency arbitrator, Go First is no longer in a position to continue to meet its financial obligations," the airline said.

However, on Wednesday, Pratt & Whitney said that the airline has a "history of missing its financial obligations".

"Pratt & Whitney is committed to the success of our airline customers, and we continue to prioritise delivery schedules for all customers. Pratt & Whitney is complying with the March 2023 arbitration ruling related to Go First. As this is now a matter of litigation, we will not comment further," the company said.

The airline CEO told Reuters that the airline had made all their due payments to P&W. 

On Wednesday, the news agency also reported that Go First owes financial creditors Rs 6,521 crore ($798 million), according to its bankruptcy filing. As of April 30, Go First had not defaulted on any of these dues, the filing said.