Cash-strapped Indian airline Go First Airways filed for voluntary insolvency resolution proceedings in the National Company Law Tribunal.
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.
The Wadia group company, which also runs bread and biscuits maker Britannia Industries and textile firm Bombay Dyeing and Manufacturing Co., holds a 32.61% stake in Go First.
Bombay Burmah, through its subsidiary Baymanco Investments Ltd, infused Rs 210 crore into Go First in the December quarter through an issue of CCPS.
Also, the Wadia group in 2021 infused around Rs 2,000 crore into Go First in equity and bridge loan ahead of its planned IPO.
Go First has a fleet size of 59 aircraft, comprising 54 A320neo and five A320.
The aircraft carrier connected 27 domestic destinations and seven international cities that include Dubai and Phuket.
Nearly half of the fleet ((28 aircraft)) grounded due to failures in their Pratt & Whitney (P&W) jet engines that are yet to be replaced.
Go First has also cancelled flights until May 5 and promised to make refunds to customers. The airline operates around 185 flights daily.
The grounding cost 108 billion rupees ($1.32 billion) in lost revenues and additional expenses, Go First said in a statement. The low-cost carrier posted its biggest annual loss in fiscal 2022.
The total amount that the airline owns, including banks, financial institutions, vendors and aircraft lessors stands at Rs 11,463 crore.
The Wadia Group was in talks to sell a part of its stake or completely exit the airline.
Go First's market share in India's domestic aviation industry fell to 6.9% in March, from 8.4% in January.
The grounding and related issues also saw the airline delay plans to go public.
The airline had the lowest on-time performance, a gauge of punctuality, of 49.2% in March.