India’s Go First cancels flights after bankruptcy
Go First, the Indian budget airline, has suspended all flights for the next three days after filing for bankruptcy protection. The company says it will issue full refunds to affected passengers. The airline cites a severe cash flow problem, blaming US engine maker Pratt & Whitney for the need to ground many of its Airbus A320neo planes.
According to Go First, the problem caused a revenue loss and expenses amounting to £1bn. The company accused Pratt & Whitney of failing to supply at least 10 serviceable spare leased engines by 27 April 2023, despite an emergency arbitrator order. In response, Pratt & Whitney has said it is complying with the March 2023 arbitration ruling.
India’s Civil Aviation Minister Jyotiraditya Scindia said the government had been assisting the airline in every possible manner. The situation highlights the intense competition in India’s airline sector, and follows the collapse of Jet Airways in 2019.