When Wings Fail: The "Go First" crisis
Introduction
India's aviation sector has experienced another
setback with Mumbai-headquartered Go First Airlines filing for bankruptcy. The
Go First crisis has sent shockwaves to multiple stakeholders by filing for
bankruptcy and cancelling flights.
In 2017, it was the fifth largest airline in
India capturing a market share of 8.4 percent.
But what were the reasons for Go First’s
downfall? What does the airline have to say?
Read this article to know all about what led to
one of the biggest carriers to collapse and shut down its operations.
Reasons of flight cancellation
Go First has been cancelling more than 4000
flights impacting 75000 plus passengers from the past 30 days.
The airline has cited operational reasons for
cancelling such flights. Also, Go First was not able to meet its financial
obligations resulting in lessors repossessing their aircrafts back. Out of the
total 54 aircrafts owned by the airline, 28 are grounded making them
un-operational.
These revelations come
after the airline runs out of funds and files for bankruptcy. 
Pratt and Whitney's Involvement
Pratt and Whitney is a global supplier of
engines whom the Go First Airlines have been blaming for its state of affairs
today. The airline says that the breach of contract by the supplier firm has
led to huge financial losses. Delivery delays and technical snags were found to
be the disrupting factors that led to the downfall. Although the engine- maker
Pratt and Whitney has refuted the claims declaring them to be without any
evidence. Further, it adds fuel to the fire by mentioning that Go First has a
history of missing financial obligations.
Go First bankruptcy Filing
The company disclosed that it had initiated the
bankruptcy proceedings with the National Company Law Tribunal as it couldn't
fulfil its financial commitments. Pratt & Whitney's refusal to disclose
engine orders, according to the company's petition, made it difficult for them
to operate half of the fleet, Pratt and Whitney being the sole provider of
engines for Go First's fleet of Airbus A320neo planes, announced the CEO
Kaushik Khona.
Go First Assurance to the Customers
The airline apologized for the difficulty the
flight cancellations had caused on its website, stating that "a full
refund would be delivered to the original means of payment promptly. We
understand that the flight cancellations may have interfered with your vacation
plans, and we pledge to help in any way we can’.
Conclusion
Pratt & Whitney engines are problematic for
several airlines, notably Turkish Airlines, Air Senegal, Air Tanzania, and
AirAsia. In order for Go First Airlines to survive, it is necessary to compel
the firm to cooperate with the March 2023 arbitration. Go First’s operations
can be restarted by September 2023, assuming P&W complies with the
agreement and provides the replacement engines.
In order to stop other airline companies from
going under, it is necessary to establish long-term legislative solutions. The
Go First incident represents a major infringement of airline security and
requires swift response.
References
- https://www.thehindu.com/business/Industry/go-first-flights-cancelled-until-may-9-dgca-directs-airline-to-process-refunds-to-passengers/article66811338.ece
- https://en.m.wikipedia.org/wiki/Go_First
- https://www.livemint.com/news/india/go-first-grounded-airline-sues-pratt-whitney-engine-maker-says-committed-to-prioritising-delivery-schedules-11683084147401.html
- https://www.timesnownews.com/business-economy/go-first-crisis-the-real-story-behind-airlines-failure-article-99940859
- https://www.businesstoday.in/industry/aviation/story/go-first-incident-is-a-serious-breach-of-inflight-safety-and-calls-for-stern-action-say-experts-360885-2023-01-18
- https://www.businesstoday.in/industry/aviation/story/go-first-at-nclt-airline-asks-tribunal-to-pass-order-on-insolvency-plea-urgently-380430-2023-05-08
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