Cash-strapped Go First has cancelled all its flights for May 3 and 4, 2023, filed an insolvency plea before the National Company Law Tribunal (NCLT) and blamed the situation on Pratt & Whitney not adhering to the arbitration award. Go First Airways said that due to the non-supply of engines by Pratt and Whitney, all operations will remain cancelled.
“Go First has had to take this step due to the ever-increasing number of failing engines supplied by Pratt & Whitney’s International Aero Engines, LLC, which has resulted in GO FIRST having to ground 25 aircraft, equivalent to approximately 50% of its Airbus A320neo aircraft fleet as of 1 May 2023,” the airline said in a press release.
“The percentage of grounded aircraft due to Pratt & Whitney’s faulty engines has grown from 7% in December 2019 to 31% in December 2020 to 50% in December 2022. This is despite Pratt & Whitney making several ongoing assurances over the years, which it has repeatedly failed to meet,” Go First added.
The airline has been facing problems with the unavailability of aircraft for many quarters now. All its A320neo aircraft are powered by Pratt & Whitney. Air India and Vistara, the other two A320neo family operators in India, are powered by CFM. IndiGo opted for CFM as part of its follow-on order, while Go First selected Pratt & Whitney for its second round of orders too.
The airline website read: “We regret to inform that due to operational reasons, Go First flights scheduled for 3rd, 4th and 5th May 2023 have been cancelled. We apologize for the inconvenience caused by the flight cancellations.”
Customers who have booked Go First flights for the above-mentioned dates will be eligible for a full refund, said the airline.
“A full refund will be issued to the original mode of payment shortly. We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can,” the airline added.
As next step the airline is looking out for investors or airline expects that it could start operations by August or September this year if the situation resolves by creating a bit of a chaos for employees and lessors.
“If Pratt & Whitney were to comply with the orders in the emergency arbitrator’s award, GO FIRST would be able to return to full operations by August/September 2023,” the airline added.
Despite the emergency arbitrator’s order, however, Pratt & Whitney has failed to provide any further serviceable spare leased engines at all, and has stated that there are no further spare leased engines available for it to comply with the emergency arbitrator’s award,” the statement said.
Meanwhile the minister of civil aviation Jyotiraditya Scindia said that 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. The issue has also been taken up with the stakeholders involved," Scindia said in a statement.
Since Go First has applied for voluntary insolvency resolution proceedings before NCLT, Sincida said it is prudent to wait for the judicial process to run its course.
“Meanwhile, the DGCA has issued a notice to the airline on the sudden suspension of flights. It’s incumbent upon the airline to make alternative travel arrangements for passengers, so that inconvenience is minimal," he added.
“No prior intimation has been given to DGCA for such cancellations which is non-compliance with conditions for approval of schedule. Thus, Go First has failed to report in writing the cancellations and reasons thereof" read the DGCA notice.
The airline has informed the government about the developments and will also be submitting a detailed report to aviation regulator Directorate General of Civil Aviation (DGCA),
The aviation regulator also asked Go First to submit its plan of action to operate flights as per the approved schedule from May 5.
Go First is also seeking to raise funds. The Wadia Group, owners of the airline are reportedly in talks to either sell a majority stake or to exit the shareholding entirely.
Meanwhile, the airline has sued Pratt & Whitney in a US federal court to make the company supply the engines to Go First.