Go First Crisis: The airline, which is facing cash crisis, has announced the cancellation of its flights from 3 to 5 May. In an e-mail sent to employees late on Tuesday, CEO Khona said the failure of Pratt & Whitney (P&W) to supply engines has led to a serious crisis.
Gofirst Insolvency Process: The statement of the CEO of the airline has come to the fore amidst the GoFirst Crisis. Kaushik Khona, CEO of GoFirst told the employees that this crisis has arisen in front of the airline today due to recurring problems in the ‘Pratt & Whitney engine’. He assured the employees that the airline is doing everything possible to deal with the situation. He said that the airline is concerned about the future of the employees.
Flight canceled for May 3 to 5
Let us tell you that the low-cost airline GoFirst (GoFirst) has applied for voluntary bankruptcy proceedings. The airline, which is facing cash crunch, has announced the cancellation of its flights from 3 to 5 May. In an e-mail sent to employees late on Tuesday, CEO Khona said the failure of Pratt & Whitney (P&W) to supply engines has led to a serious crisis.
Took steps for emergency mediation
He said that P&W has been trying to assure the airline management for more than 12 months to provide spare engines and repair them. Despite this, now P&W is obstructing the talks. Khona said that the airline has taken steps for emergency mediation in Singapore in this matter.
Asked to lease extra engines
He told that the mediation has asked P&W (P&W) to lease at least 10 serviceable extra engines by April 27. Apart from this, the order to lease 10 more engines by December 2023 has been given to P&W. Khona said in the e-mail that all of the airline’s A320neo aircraft would be in operation by August/September, 2023… Unfortunately, Pratt & Whitney has chosen not to comply with the emergency arbitration order.
More than half of the airline’s aircraft are grounded,
he said, after which the airline again approached for mediation. However, P&W is not ready to accept this order. In such a situation, the airline has appealed for enforcement action in the US court. More than half of the airline’s aircraft are grounded due to engine issues. Khona said that with the reduction in the size of the fleet, the airline is not able to raise money to pay the lessors.
Aircraft leasing companies are taking action against the airline. Not only this, the planes are being asked back. In this situation the airline has no option but to go for insolvency resolution proceedings.
