Go First CEO Kaushik Khona has said that owner Wadia Group is completely committed to the airline and that there is no question of their exit from Go First. The CEO also said that they have been in touch with all the lenders and are in talks with the aviation ministry.
In an interview with news agency Reuters, Khona also said that they will not sell tickets till at least May 15. So far, the airline has issued a statement saying that flights on May 3, 4, and 5 have been cancelled. This prompted Directorate General of Civil Aviation (DGCA) to send a show cause notice to the airline for cancellation of tickets with no prior intimation.
Khona said that the Wadia Group board members are not resigning. He said that the insolvency proceedings are not to sell the airline but to revive it.
Moreover, he also confirmed that the airline made all the payments to Pratt & Whitney, who has been accused of non-supply of plane engines. In a statement, Go First said that its insolvency filing followed a refusal by the engine supplier to comply with an arbitration order to release spare leased engines that would have allowed the airline to return to full operations.
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Go First said that the grounded aircraft due to Pratt & Whitney’s faulty engines ballooned from 7 per cent of its fleet in December 2019 to 50 per cent in December 2022, and costing it $1.32 billion in lost revenues. The engine maker, meanwhile, said that it is committed to the success of its airline customers and continues to prioritize delivery schedules. For the arbitration order, Pratt & Whitney said that it is complying with the March 2023 order.
Go First is in touch with all lenders and discussions are ongoing with the Civil Aviation ministry. Khona also said in the interview that they will hold talks with lessors so that they don’t take any action.
In the interview Khona also pointed out that the government is very keen for the airline to not fail. “The Indian government is very keen that we should not fail,” Khona told Reuters.
Go First is “continuously evaluating options”, and some parties have expressed interest in the airline.
On Tuesday, Civil Aviation minister Jyotiraditya Scindia said that the government is assisting Go First in every possible manner. "Go First has been faced with critical supply chain issues with regard to its engines. The government has been assisting the airline in every possible manner. The issue has also been taken up with the stakeholders involved," said Scindia.
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