GoFirst | GoFirst blames engine supply for insolvency process

Mumbai. Low-cost airline GoFirst, which has filed for voluntary insolvency resolution process, said on Tuesday that frequent interruptions in engine supplies from Pratt & Whitney have grounded half of its planes, which the company will be unable to meet its financial obligations. Not there. Wadia Group-owned airline GoFirst shared its detailed statement with PTI, saying it has been forced to approach the National Company Law Tribunal (NCLT) for insolvency resolution process. For this, the company has given the biggest reason for not getting the engine from the engine supplier company P&W. It also accused P&W of failing to repair and provide spare parts to the aircraft engines. GoFirst India Limited said, “Nearly 50 per cent of our aircraft have been grounded due to engine issues. Apart from this, GoFirst has lost revenue of Rs 10,800 crore due to doubling of operating cost. Also read The airline said that in the current situation the company is no longer in a position to meet its financial obligations, hence an application has been filed before the NCLT. It termed the application under Section 10 of the Insolvency and Bankruptcy Code as a step taken in the interest of all stakeholders. GoFirst said that Rs 6,500 crore has been infused by promoters so far, of which Rs 2,400 crore has been infused in the last 24 months. In April 2023 alone, the promoter group has invested Rs 290 crore in this airline. (agency)