India’s fifth largest airline Go First has filed for bankruptcy after cancelling flights over three days this week.
Established in 2005, the mainly domestic ultra-low cost carrier operated a fleet of almost 60 Airbus A320 aircraft.
The airline’s website said: “We regret to inform you that due to operational reasons Go First flights scheduled for 3rd, 4th and 5th May have been cancelled.
“We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can.”
Go First reportedly said in a statement that its filing for bankruptcy followed a refusal by engine supplier Pratt & Whitney to comply with an arbitration order to release spare leased engines that would have allowed the airline to return to full operations.
Grounded aircraft “due to Pratt & Whitney’s faulty engines” rose from 7% of its fleet in December 2019 to 50% in December 2022, the airline said, costing it 108 billion rupees ($1.32 billion) in lost revenues and additional expenses.
The airline filed for voluntary insolvency with India’s National Company Law Tribunal after having to ground 25 aircraft due to the engine dispute.
Pratt & Whitney told Reuters that it was “committed to the success of our airline customers, and we continue to prioritise delivery schedules for all customers.”
“P&W is complying with the March 2023 arbitration ruling related to Go First. As this is now a matter of litigation, we will not comment further,” it added.
It is the first Indian carrier to file for bankruptcy since Jet Airways in 2019.
Go First was the fifth largest airline in India by scheduled departures this month, according to aviation data firm Cirium.
The airline was scheduled to serve 34 destinations across Asia this month, with its largest operations being at Delhi and Mumbai respectively.
Go First was scheduled to operate 6,225 flights – equating to more than 1.1 million seats – in May.
While mainly operating internally in India, the airlines network including international flights to destinations including the Middle East, the Maldives and Thailand.
India’s civil aviation minister Jyotiraditya Scindia said: “Go First has been faced with critical supply chain issues about their engines. The Government of India has been assisting the airline in every possible manner. The issue has also been taken up with the stakeholders involved,”