New Delhi: Wadia group-owned Go First will temporarily suspend flights on May 3 and 4 amid severe fund crunch. The airline’s chief Kaushik Khona said that the budget airline has filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi.
“It is an unfortunate decision (filing for voluntary insolvency resolution proceedings) but it had to be done to protect the interests of the company”, said airline chief.
Khona revealed that the airline has grounded 28 planes, which accounts more than half of its fleet due to non-supply of engines by Pratt & Whitney (P&W). this has resulted in a fund crunch. As the airline informed the government about the fund crunch, they would be submitting a detailed report to aviation regulator Directorate General of Civil Aviation (DGCA).
It is only when the NCLT admits the application, flights would be restarted. Meanwhile, the airline has more than 5000 employees whose employment shall remain at stake/ the flights are suspended on May 3 and 4.