Cash-strapped Indian airline GoFirst has suspended flights from May 3 to May 5 to clear dues of oil marketing companies.
The Wadia Group airline told the Directorate General of Civil Aviation that it would not be able to operate flights, sources said.
Go First has been struggling with financial headwinds for a while. It has cash flow arrangements with oil companies.
This means that the carrier has to pay for the fuel every day and is not getting any credit from the suppliers.
At the heart of the crisis are Pratt & Whitney (P&W) engine problems and late lease payments that have resulted in the grounding of nearly half of the Airbus A320 family fleet. Salary delays have become a regular occurrence on Go First in the recent past.
Reports from the United States suggest the airline has filed an emergency petition against P&W in Delaware, saying there is a “significant risk” the airline could go out of business and declare bankruptcy if it doesn’t get the engine soon. The comments of the airlines are awaited in this regard as well.
