Govt has been assisting Go First in every possible manner: Scindia

Civil Aviation Minister Jyotiraditya Scindia on Tuesday said that government has been assisting the beleaguered Go First airline "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.

It is prudent to wait for judicial process to run its course, said Scindia while referring to the airline filing for voluntary insolvency resolution proceedings before the NCLT. It has also decided to cancel all flights for May 3 and 4.

Go First, which has been flying for more than 17 years, carried 29.11 lakh domestic passengers in the first quarter of this year and its market share during this period was 7.8 per cent.

ALSO READ: Go Air flights cancelled! Here's all you need to know after airline files for bankruptcy

Scindia said it was unfortunate that the operational bottleneck related to engine supplies has dealt a blow to the airline's financial position.

Further, Scindia said the Directorate General of Civil Aviation (DGCA) has issued a notice to the airline on the sudden suspension of flights.

 It is incumbent upon the airline to make alternative travel arrangements for passengers, so that inconvenience is minimal, he added.

Go First filed for bankruptcy proceedings on Tuesday, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet.

The move marks the first major airline collapse in India since Jet Airways filed for bankruptcy in 2019, and underscores the fierce competition in a sector dominated by IndiGo and the entry of newer operators such as Akasa Air.

The filing with the National Company Law Tribunal comes after Pratt & Whitney, the exclusive engine supplier for the airline's Airbus A320neo aircraft fleet, refused to comply with an order to release engines to the airline that would have allowed it return to full operations, the company said.

"...in the absence of Pratt & Whitney not providing the required number of spare leased engines in accordance with the order issued by the emergency arbitrator, Go First is no longer in a position to continue to meet its financial obligations," the airline said.

The collapse could benefit rival airlines as the industry tries to meet a surge in domestic air travel in the aftermath of the COVID-19 pandemic.

The number of grounded aircraft "due to Pratt & Whitney's faulty engines" increased from 7% of its fleet in December 2019 to 31% in December 2020 and 50% in December 2022, the airline said.

The groundings cost Go First Rs 10,800 crore in lost revenues and additional expenses, it said.

They also resulted in an erosion in Go First's market share to 6.9% in March from 8.4% in January, latest data from DGCA showed.

With inputs from agencies