Beleaguered Indian operator Go First has suspended its operations further until 9 May, amid reports that the airline owes creditors over INR65 billion ($796 million).
The low-cost carrier, which was grounded on 3 May, says in a notice on its website that all flights have been cancelled “due to operational reasons”.No further explanation was given, though the airline – previously known as GoAir – had previously blamed its woes on “ever-increasing” failures of Pratt & Whitney engines, which it claims have left half its Airbus A320neo fleet grounded.
The extension comes as details emerge of Go First’s financial issues. A Reuters report, citing bankruptcy filings, says the airline has not yet defaulted on its dues to creditors, but that given its “present financial situation”, a default “would be imminent”.
Creditors listed include Central Bank of India, Deutsche Bank, as well as Bank of Baroda.
Go First has separately filed a lawsuit against P&W on 28 April in US District Court for the District of Delaware. Court documents lay out Go First’s complaints, including allegations that the PW1100Gs have proved far less durable than expected, decimating its operations and finances, and that P&W failed to replace or repair engines as required by maintenance contracts.
According to Cirium fleets data, the airline has 29 in-service A320s, comprising five A320ceos and 24 A320neos. Another 25 A320neos are in storage.
