India’s aviation minister has said the government has been “assisting the airline in every possible manner.”

Advertisement
Advertisement

“Go First has been faced with critical supply chain issues with regard to their engines...it is unfortunate that this operational bottleneck has dealt a blow to the airline’s financial position,” minister Jyotiraditya Scindia said today.

Go First’s 59-aircraft fleet operated across 35 destinations—27 domestic, and eight international.

Advertisement

Go First’s financial troubles

The Wadia-group airline owes creditors $798 million. Its bankruptcy filing said it had never defaulted on payments, Reuters reported.

Advertisement

“...Considering the present financial situation of the corporate applicant defaults to financial creditors would be imminent,” Reuters reported citing Go First’s bankruptcy filing document.

However, Go First’s engine partners, Pratt & Whitney, today said the carrier has a “lengthy history of missing its financial obligations.”

Advertisement

The airline, on the other hand, had blamed the non-availability of Pratt & Whitney engines for its inability to meet financial obligations. It also cited the same reason for grounding half of its fleet.

Advertisement

Go First’s loss is IndiGo’s again

The low-cost carrier’s abrupt move has left its customers confused while giving a fillip to IndiGo, India’s largest airline. The two airlines have many overlapping domestic routes.

Advertisement

Go First’s disappearance could also help the country’s youngest carrier, Akasa Air.

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.