Homegrown ultra-low-cost airline Go First, founded as GoAir, was granted bankruptcy protection on Wednesday, paving the way for the budget carrier to renegotiate debts and contracts.
Here are some details on the U.S. engine maker Pratt & Whitney’s engines, which Go First says are at the heart of the crisis:
Go First was incorporated in April 2004 as GoAir and commenced flight operations in November the following year. Its inaugural flight was from Mumbai to Ahmedabad.
Go First connects 27 domestic destinations and seven international cities that include Dubai and Phuket. It has 59 aircraft, comprised of 54 A320neo and five A320.
Nearly half of the fleet was grounded due to problems with their Pratt & Whitney jet engines. The grounding cost 108 billion rupees ($1.32 billion) in lost revenues and additional expenses.
The low-cost carrier posted its biggest annual loss in fiscal 2022. Go First's market share in India's domestic aviation industry fell to 6.9% in March, from 8.4% in January.
The airline had an on-time performance, a gauge of punctuality, of 49.2% in March - the lowest of all major Indian airlines for that month.
Go First files for voluntary insolvency resolution proceedings, seeks interim moratorium on financial obligations; suspends all flights till May 5.
DGCA issues show cause notice to Go First for sudden suspension of flights. Go First suspends sale of tickets till May 15. NCLT reserves its order on Go First's petition.
Go First cancels all flights till May 12.
Go First requests NCLT to take an early decision on its petition. DGCA directs the airline to immediately stop sale of tickets till further orders.
Go First says will respond to DGCA show cause notice in due course. Lessors seek deregistration of 45 Go First planes in last one week.
NCLT admits Go First's petition for insolvency resolution proceedings; imposes moratorium on airline.