Go First, India’s Low-Cost Carrier (LCC), has taken a loan of $49 million to restore operational efficiency. The airline is expecting delivery of 16 Pratt & Whitney engines in the next few weeks to bring its grounded fleet back in service. This loan is a part of the Indian government’s Emergency Credit Line Guarantee Scheme (ECLGS), which offers financial assistance to airlines hit by the pandemic.
Go First is currently grappling with the issue of grounding almost 25 planes due to the non-availability of Pratt & Whitney (P&W) engines that power its A320 fleet. "The airline is currently in talks with Pratt & Whitney and expects to get 16 engines in the coming weeks. This will help in operating more aircraft," the airline spokesperson said.
Go First can take up to $183 million under the scheme, however, it has availed at least a total of $100 million so far. The company's spokesperson said that 25-26 planes are on the ground and currently, some 32 aircraft are operational. Sources have revealed that the airline received close to $342 million cash infusion from promoters in the last 15 months to keep operations running during the pandemic and travel curbs.
Earlier this month, Go First was looking for a loan of up to $73 million and had approached its leading banks, Central Bank, Bank of Baroda, and IDBI.
The airline operates an all-Airbus fleet of 59 A320s, of which over 25 are currently grounded. Go First is one of the worst-hit airlines in India due to supply chain woes leading to multiple flight cancellations leading to chaos.
Going ahead, Go First is making maximum efforts to tackle the problem of cancellations and delays. The airline has also increased the utilization of its active planes to maintain the schedule, the airline spokesperson said.
To tackle the supply chain problem due to the lack of engines, Pratt & Whitney is planning to supply 20-25 engines every month starting in December 2022 and is planning to clear the backlog of its engine deliveries to Indian airlines in the next three months.