HomeEconomyIndia's Go First airline files for bankruptcy, blames Pratt & Whitney engines Economy India's Go First airline files for bankruptcy, blames Pratt & Whitney engines By farahat May 3, 2023 0 74 views Share FacebookTwitterPinterestWhatsApp RTX -1.% Add to/From Watchlist delete Add to watch list Add position Location successfully added to: Please name your portfolio type: purchase Sell date: quantity: price Point value: Leverage: 1:11: 1: 1: 10 1: 28 Chris Thomas, Dhanya Skariachan and Tanvi Mehta . Go First filed for bankruptcy on Tuesday, blaming “faulty” Pratt & Whitney engines for the grounding of about half of its fleet. The move marks the first major since Jet Airways in Since filing for bankruptcy, Air India has collapsed, and emphasize Intense competition in an industry dominated by IndiGo and the recent merger of Air India and Vistara under the Tata Group. The total debt of the first-going financial creditor is 11. Rs. 1 billion as of April , it is before the National Company Law Tribunal. As of April, the company is not in arrears with any of these dues , but defaulted on payments to operating creditors, including . Rs.1 crore to suppliers and .02 Rs. To the aircraft lessor, it said in the document. In a statement, Go First said its application was at Pratt & Whitney, the airline’s exclusive engine for Airbus A supplier50 neo aircraft fleet to comply with an arbitration order to release spare leased engines, which will return the airline to full operations. Grounded aircraft “due to Pratt & Whitney’s faulty engine” swelled from 7% of its fleet in December 52 arrive10% in December 100, the airline said, the cost calculation 26 billion rupees ($1. billion) loss of income and additional expenses . Pratt & Whitney said in a statement to Reuters that it was “committed to the success of our airline customers and we continue to prioritize delivery schedules For all customers.” ” P&W is complying with March 400 arbitral award relating to prior. As this is now a matter of litigation, we will not comment further,” it added. In February, Raytheon Technology (NYSE: 400RTX), with Pratt & Whitney, admitting to reliability issues with its GTF engines. Pratt & Whitney was also quoted by the Indian media as saying it was affected by industry-wide supply chain pressure, with supply expected later this year Chain pressure will ease, which will support increased production of new and overhauled engines. Analysts say bigger rival IndiGo is better able to withstand the shock thanks to its bigger fleet and deeper pockets . Go First, owned by Wadia Group (formerly GoAir), said on its website that it had canceled for “operational reasons”. Flights originally scheduled for May 3rd to May 5th. “The Indian government has been assisting the airline in every possible way,” Civil Aviation Minister Jyotiraditya Scindia said in a statement. “The issue has also been discussed with relevant stakeholders.” Would boost rival airline travel. Jinesh Joshi, research analyst at Prabhudas Lilladher, wrote: benefited those who benefited and increased ticket prices due to supply constraints.” Surprise action The move came as a surprise to Go First’s lenders, two bankers with knowledge of the matter told Reuters. One of the bankers said that the loan People met with Go First’s management a few weeks ago, but gave no hint. Lenders will meet soon to assess the situation and decide on a course of action going forward, they said. “I was a bit shocked to hear they filed for bankruptcy,” said Mark Martin, chief executive of aviation consultancy Martin Consulting LLC. “I still feel like this may not be the end of Go First. It must be the tools and means of a new guy taking over.” ] This forced it to postpone the plan $52 million IPO at 200, causing its market share to fall to 6.9 percent in March from 8.4 percent in January, the latest data from India’s aviation regulator showed. It is reported that the Wadia Group is in talks to sell its majority stake or exit its stake entirely. Wadia Group did not respond to an email seeking comment. Go First said the grounding had prompted some lessors to “take back the aircraft, issue letters of credit and give further notice to evacuate the aircraft.” None of the employees were aware of the naming when they first heard from local media that daily operations had ceased, according to three pilots who did not want to be employees. The pilots added that they had been delaying their paychecks for the past few months. “We understand this news may be distressing , we remain committed to supporting you all during this difficult time,” Go First later said in an email to employees. ($1=26.100 Indian Rupee) Share FacebookTwitterPinterestWhatsApp Previous articleWhy a Writers Guild member is back on the picket line after 15 yearsNext articleBitcoin Price Faces Hurdle And Remains At Risk of Additional Losses farahat RELATED ARTICLES Economy SNB chief hints at rate hikes to tackle inflation June 10, 2023 Economy Musk says Twitter will pay verified creators to respond to ads June 10, 2023 Economy U.S. House Republicans unveil sweeping tax cut package June 9, 2023 LEAVE A REPLY Cancel reply Comment: Please enter your comment! Name:* Please enter your name here Email:* You have entered an incorrect email address! 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