Cash-strapped Indian airline Go First Airways filed for voluntary insolvency resolution proceedings in the National Company Law Tribunal, blaming Pratt & Whitney engines for the grounding of about half its fleet.
The insolvency filing marks the first major airline collapse in the country since Jet Airways filed for bankruptcy in 2019, and underscores the fierce competition in the sector.
Jet Airways, once India's largest private airline, stopped flying after running out of cash in April 2019. It owed about 180 billion Indian rupees ($2.20 billion) to its creditors.
Despite being cleared to resume commercial flights in May last year, the airline's comeback has been dragged by differences between its current owners.
The airline is owned by a consortium led by UAE-based businessman Murari Lal Jalan and London-based Kalrock Capital.
Its Chief Executive Officer designate Sanjeev Kapoor quit the company last week.
Indian tycoon Vijay Mallya-owned Kingfisher Airlines ceased flying from 2012 after posting multiple quarters of losses following the merger with low-cost carrier Air Deccan.
Kingfisher owed its lenders, including State Bank of India, Rs 90 billion.
Lenders have since recovered some of the dues owed by Vijay Mallya, who was sentenced by India's top court to four months in jail for refusing to disclose his assets after defaulting on dues owed to banks.