Wadia Group Airlines GoFirst moves NCLT to declare itself bankrupt!

Go First Crisis: Wadia Group’s airline GoFirst has filed an application for Voluntary Insolvency Resolution before the National Company Law Tribunal to declare itself bankrupt after canceling flights on May 3 and 4. Company’s CEO Kaushik Khona has given this information. Airlines have also informed the Central Government about this and will soon present a detailed report before the DGCA.

GoFirst said that half of its aircraft are unable to fly due to frequent interruptions in engine supply from Pratt & Whitney, due to which the company is not able to meet its financial obligations. According to the airlines, it has been forced to approach the NCLT for insolvency resolution. For this, the company has given the biggest reason for not getting the engine from the engine supplier company P&W. He has also accused Pratt & Whitney of failing to repair and provide spare parts for the aircraft engines.

GoFirst India Limited said, about 50 percent of our aircraft have been grounded due to engine problems. Apart from this, GoFirst has lost revenue of Rs 10,800 crore due to doubling of operation cost. 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.

GoFirst said that Rs 6,500 crore has been infused so far by promoters, of which Rs 2,400 crore has been infused in the last 24 months. In April 2023 itself, the promoter group has infused Rs 290 crore into the airline. Earlier, GoFirst has canceled flights scheduled to fly on 3 and 4 May. Airlines have taken this decision due to not being able to pay the dues of the oil companies.

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