Go First Files For Voluntary Insolvency Resolution Proceedings After Suspending Flights.
Go First Airlines will temporarily suspend flights due to a severe fund crunch on May 3 and 4, the airline’s Chief Executive Officer Kaushik Khona said on Tuesday. The airline has also filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal, according to a PTI report.
The airline has grounded 28 planes and more than half of its fleet due to non-supply of engines by Pratt & Whitney. The has resulted in a fund crunch, Khona said.
“It is an unfortunate decision (filing for voluntary insolvency resolution proceedings) but it had to be done to protect the interests of the company,” Khona said.
The Wadia Group-owned company has informed the government about the development and will also be submitting a detailed report to the Directorate General of Civil Aviation.
