Cash-Strapped Airline Go First Extends Suspension Of Flights Till May 26

Go First Crisis: The airline has stopped flying from May 3 due to financial losses as a result of persistent issues with engines from US firm Pratt & Whitney.

A Go First airline aircraft, formerly known as GoAir, is seen parked at the apron of the Mumbai International airport ( Image Source :Getty )

Cash-strapped Go First on Thursday announced that it had cancelled all flights until May 26, the airline said in a statement. In a statement, Go First said it hoped to resume bookings shortly.

The airline has stopped flying from May 3 due to financial losses as a result of persistent issues with engines from US firm Pratt & Whitney (P&W), which powers its Airbus A320 neo aircraft.

"A full refund will be issued to the original mode of payment shortly...as you are aware, the company has filed an application for immediate resolution and revival of operations. We will be able to resume bookings shortly," the airline, which is undergoing insolvency resolution proceedings, said. 

The development comes even as reports had earlier said the airline was likely to resume flights from May 24.

On May 10, the National Company Law Tribunal (NCLT) allowed the voluntary insolvency resolution plea by Go First. To manage the affairs of the airline, Abhilash Lal was appointed as the Interim Resolution Professional (IRP).

However, unhappy with the NCLT decision, three aircraft lessorshave moved the National Company Law Appellate Tribunal (NCLAT).

All three lessors have leased out around 21 aircraft to Go First. The appellate tribunal said it would pass the order on May 22, PTI reported.

Earlier this month, the Directorate General of Civil Aviation issued a show cause notice to Go First, asking the Wadia Group-owned airline to explain the reasons behind its inability to run operations within 15 days.

Meanwhile, Go First has launched a claim management portal "gofirstclaims.in/claims" for the Corporate Insolvency Resolution Process (CIRP).

The airline has liabilities worth Rs 11,463 crore. The budget airline started domestic operations in India in 2005-06, with the first flight from Mumbai to Ahmedabad. International operations were launched in 2018-19. The airline operates around 180-185 flights daily.

The crisis 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.