Go First Airline: Go First airline in financial trouble According to Deputy Aviation Minister VK Singh, Go First is unlikely to receive any assistance from the government in the absence of a resolution to its ongoing engine problems. The Wadia group-owned airline, which declared bankruptcy last week, attributed the grounding of almost half of its 54 Airbus A320neos to “faulty” Pratt & Whitney engines. According to Singh, who spoke to the news agency ANI, the government has helped US-based Pratt & Whitney.
Manufacture of Engine is not progressing as quickly as it need to
The difficulty with Go Air is that its flights are powered by Pratt & Whitney engines, which have had management problems since COVID-19. Therefore, manufacture of engines is not progressing as quickly as it need to, Singh informed the news agency. “How can a bailout be avoided? Where will Pratt & Whitney purchase (engines) from? In answer to a query regarding the likelihood of a government bailout, Singh stated, “A bailout can only occur when something can be done about this.
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The airline owes more than Rs 11000 crore in total
The Raytheon Technologies subsidiary Pratt & Whitney has not responded to the minister’s comments in a formal manner. The US aerospace company earlier informed the NCLT that the airline’s assertion that faulty engines caused it to declare for bankruptcy was “astounding” and devoid of supporting documentation. Go First, which has been operating for almost 20 years, is most likely to become the first significant Indian airline to go out of business since Jet Airways in 2019. The struggling airline is under increasing pressure from lessors, financial creditors, and other stakeholders, and things are becoming worse every day. The airline owes more than Rs 11,000 crore in total. Because of the dire circumstances, it is difficult to repay clients who had purchased tickets for future travel. As more lessors tried to seize planes on Monday, Go First asked the NCLT to accept its request for bankruptcy protections as soon as possible. Go First might possibly lose its slots and ultimately its air operator’s certificate (AOC) if the situation does not get better.
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