Go First Airlines on Wednesday has filed a plea seeking the voluntary initiation of insolvency proceedings before the National Company Law Tribunal (NCLT), Delhi. The matter will be heard tomorrow.
The company filed a plea before the tribunal, stating that its flights were being grounded due to frequent and persistent problems with engines supplied by the American firm, Pratt & Whitney (P&W).
The company also issued a statement on its Twitter account that it will temporarily suspend all flying operations from May 3 to 5, 2023.
Senior Advocate P Nagesh mentioned the petition under Section 7 of the Insolvency and Bankruptcy Code before the NCLT Chairperson.
The tribunal will hear the petition filed through Advocates Pranjal Kishore and Akshay Sharma tomorrow.
The company reportedly filed for voluntary insolvency because it could no longer satisfy its financial responsibilities.
It stated that due to P&W’s faulty engines, it was forced to ground 28 flights, accounting for more than half of its fleet.
The corporation also claimed that P&W failed to repair the engines or deliver appropriate spares in accordance with the contractual arrangement.
The airline had filed a complaint against P&W in federal court in Delaware, US seeking enforcement of an arbitral award.
The March 30 award in favour of Go First Airlines ordered P&W to provide the airline with engines, failing which there was a risk of the airline shutting down.
