GoFirst has declared itself bankrupt. Image Credit source: File Photo
Wadia Group’s Airlines GoFirst, one of the oldest business groups in the country, has declared itself bankrupt. The Wadia Group company said on Tuesday that it is no longer able to meet its financial needs, so it now wants a solution by declaring itself bankrupt. The reaction from the government has also come on the closure of another big airlines in the country.
Civil Aviation Minister Jyotiraditya Scindia has said on the situation of Go First that one should wait for the judicial process to be completed. It will work on its own accord.
It is prudent to wait for judicial process to run its course: Civil Aviation Minister Jyotiraditya Scindia on Go First situation
— Press Trust of India (@PTI_News) May 2, 2023
See also: Go First drowned, now the future of 5000 employees hangs in the balance
Jyotiraditya Scindia says that GoFirst is going through a tough time on issues related to the supply chain regarding the engines of its planes. The government is helping the company in every possible way. This matter has also been discussed with other stake holders. It is unfortunate that the financial condition of the airlines has become very bad. It has been brought to the notice of the government that GoFirst has approached the NCLT. We should wait for the completion of the judicial process.
Pratt & Whitney’s engine did junk
Go First has told the reason for its destruction to the faulty engine of America’s ‘Pratt & Whitney’ company. Because of this, more than half of the company’s aircraft are no longer airworthy. They are standing at different airports and gathering dust.
Filed own bankruptcy papers
GoFirst CEO Kaushik Khona said that the company has applied to the National Company Law Tribunal (NCLT) to voluntarily start the insolvency resolution process. It has also become difficult for the company to bear its expenses at this time.
read this also: 3000 people will go to Morgan Stanley
All GoFirst flights suspended
GoFirst had announced suspension of all its flight service for May 3 and 4 before the company declared bankruptcy. On this, a show cause notice has been issued to him from the Directorate General of Civil Aviation (DGCA). The company has been asked to inform about the steps taken for the inconvenience caused to the passengers due to this. With this, DGCA has asked the company to give a complete plan for operating flights from May 5, 2023 onwards.