Go First Cancels All Flights On May 3-4 Due To Severe Cash Crunch; Files For Bankruptcy
The airline reported a net loss of $218 million in FY22, according to regulatory filings. This was twice as much as the previous year¡¯s loss of $105 million.
All Go First flights will remain cancelled on May 3-4. The airline has communicated its decision to the Directorate General of Civil Aviation (DGCA), according to ANI. In this regard, Go First Airways said that due to the non-supply of engines by US-based Jet engines manufacturer Pratt & Whitney, operations will remain cancelled.
gofirst
What Go First officials said
¡°Go First is facing financial crunch due to non-supply of engines by US-based jet engines manufacturer Pratt and Whitney (P&W) that has forced grounding more than 50 planes,¡± a Go First official told ANI.
The Wadia-group-owned airline is looking for a strategic investor in the company and is talking to potential investors.
"The airline is on cash and carry mode meaning it has to pay daily for the number of flights it wants to operate. It has agreed that if there is non-payment, then the vendor can stop business," an official of an oil marketing company said.
gofirst
Many ranted it out on social media
On Tuesday, social media was flooded with complaints from passengers regarding the cancellation of their scheduled Go Air flights. The passengers complained to the Ministry of Civil Aviation and DGCA, demanding their refunds on bookings.
"My Go air ticket booking was cancelled without any reason. If flight G8 237 is operational on 03.05.2023 then there is no reason to cancel except to sell tickets at higher prices. Why only booking is cancelled when the flight is operational?" a passenger asked.
"A flight has been cancelled for tomorrow from Srinagar to Delhi. It was cancelled and rescheduled without informing. Too Bad service GoAir. Please Refund My Money," another passenger said.
runway
Airline's net loss
Go First had 30 aircraft grounded as of March 31, including nine on which the lease payments are due, industry officials said. Go First has a total of 61 aircraft in its fleet ¨C 56 A320neos and five A320ceos, according to the airline's website.
The loss of passenger revenue comes when airfares are high and traffic is soaring after the pandemic. The airline plans to operate 1,538 flights a week in the ongoing summer schedule, 40 lower than last year. The season started on March 26 and goes on till October 28. The fall in passengers carried has impacted Go First's financials.
The airline reported a net loss of $218 million in FY22, according to regulatory filings. This was twice as much as the previous year's loss of $105 million.
For more on news and current affairs from around the world, please visit Indiatimes News.
Senior Writer at Indiatimes. She writes on Lifestyle, fashion, beauty, astrology and health.
