Go First, which went under citing Pratt & Whitney engine failures, is optimistic about resuming flights within seven days if National Company Law Tribunal restrains lessors from taking back its aircraft.
The airline, controlled by billionaire Nusli Wadia’s group, has enough funds to sustain operations on a cash-and-carry model for about 10 days, Bloomberg reported, quoting airline’s chief executive officer Kaushik Khona as saying.
The airline is also seeking to request for an outstanding emergency credit; it is eligible under the government’s program to offer life-support to pandemic-hit industries, Khona said.
“We will hundred percent be able to save the airline” if the court starts the insolvency resolution process “immediately,” Khona told Bloomberg. “All our stakeholders, including oil suppliers, service providers are aligned to the fact that we have been continuously cooperating and transparent with them.”
Meanwhile, as Go First awaits the NCLT ruling on its voluntary insolvency resolution plea, the tribunal is set to hear on Monday two petitions seeking insolvency proceedings against the crisis-hit airline.
With liabilities of Rs 11,463 crore and a financial crunch, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on financial obligations.
After hearing the plea on Thursday, NCLT reserved its order.
The tribunal is set to hear two insolvency petitions filed against the airline on Monday, according to lawyers.
The petition filed by SS Associates Services Pvt Ltd, which was providing transport services to the carrier, is with respect to a claim of around Rs 3 crore.
A pilot has also filed a petition claiming dues for his services provided to the airline. The amount involved is more than Rs 1 crore. The two petitions are scheduled to be heard by the Principal Bench of the NCLT.
Go First, in its petition filed before the tribunal on May 2, sought directions to restrain aircraft lessors from taking any recovery action as well as restrain aviation watchdog DGCA and suppliers of essential goods and services from initiating adverse actions.
Another request is that the Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI) and private airport operators should not cancel any departure and parking slots allotted to the company.
The airline also wants fuel suppliers to continue supply for aircraft operations and not terminate the present contractual arrangements.
Go First has cancelled all flights till May 9.
Moreover, problems with Pratt engines have affected the airline industry worldwide ahead of the peak summer travel season. Deutsche Lufthansa AG has a third of its A220 fleet temporarily grounded in Zurich because of issues with Pratt engines. Turkish Airlines has sought leased engines and support from Pratt to repair its grounded A320neo aircraft.
Go First has said the combustor of Pratt engines degraded much faster than it should, causing premature failures and shutdowns. That technical snag forced the airline to remove 140 engines between 2016 and February 2023, out of a total 510 defective GTF engines that had to be changed and swapped during that period.
Go First has 16 undelivered Airbus aircraft, Khona said, adding the airline is talking to the European planemaker about the engine issues and has asked it to hold the deliveries of three jets.
(With agency inputs)
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