Further, Go First said it has received significant support from the government’s Emergency Credit Line Guarantee Scheme (ECLGS). “This brings the total investment in the airline since its inception to approximately Rs 6,500 crore,” the statement said. An amount of Rs 290 crore was pumped in April this year. In a detailed statement, Go First said promoters have infused funds worth Rs 3,200 crore into the airline in the last three years and out of the total amount, Rs 2,400 crore was injected in the last 24 months. The issue has also been taken up with the stakeholders involved,” Scindia said in a statement. The Government of India has been assisting the airline in every possible manner.
“Go First has been faced with critical supply chain issues with regard to their engines. Meanwhile, Civil Aviation Minister Jyotiraditya Scindia on Tuesday said it was unfortunate that the operational bottleneck related to engine supplies has dealt a blow to the airline’s financial position.Īgainst the backdrop of the airline filing an application for voluntary insolvency resolution proceedings, the Minister said, “It is prudent to wait for the judicial process to run its course.” Further, M/s Go First is also directed to submit the details of the steps taken to mitigate the inconvenience caused to the-passengers booked on flights for 3rd & 4th May 2023, and submit their plan of action to operate flights as per the approved schedule from 05th May, 2023 onwards,” DGCA said in its notice. Thus Go First has failed to report in writing the cancellations and reasons thereof. “Whereas no prior intimation has been given to DGCA for such cancellations which is non-compliance with conditions for approval of schedule. The DGCA has sought an explanation within 24 hours from date and time of issue the notice.
Taking note of the development, aviation regulator Directorate General of Civil Aviation (DGCA) on Tuesday issued a show-cause notice to Go First after the airline decided to cancel flights for two days (May 3 and 4) amid a severe financial crunch.
#EXPORT EWALLET GO FILE SERIAL#
“The grounding of close to 50 per cent of its fleet due to the serial failure of Pratt & Whitney’s engines, while incurring 100% of its operational costs has set Go First back by Rs 10,800 crore in lost revenues and additional expenses,” the airline said. The airline, which has been grappling with engine issues since January 2020, said the situation came to such a pass as P&W refused to comply with an order issued by the Singapore International Arbitration Centre (SIAC), an emergency arbitrator. The airline grounded 25 aircraft due to non-supply of engines by Pratt & Whitney (P&W).Īccording to the airline, it is no longer in a position to continue to meet its financial obligations and has taken the step to approach the NCLT “to protect the interests of all stakeholders”. Wadia group-owned air carrier Go First Airways on Tuesday filed for insolvency resolution proceedings in the National Company Law Tribunal, claiming it has been forced to move NCLT due to “serial failure” of Pratt & Whitney (P&W) engines resulting in grounding of 50 per cent of the fleet.
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