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Go First has been battling financial headwinds for some time now. It has been in a cash-and-carry arrangement with the oil companies. This means that the carrier has to pay for the fuel each day and is not getting any credit from the suppliers.
Cash-strapped Indian airline Go First has suspended its flights from May 3 to May 5 over pending dues owed to oil marketing companies. The Wadia group airline has informed the Directorate General of Civil Aviation that it will not be able to operate flights, sources in the know said.
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Go First has been battling financial headwinds for some time now. It has been in a cash-and-carry arrangement with the oil companies. This means that the carrier has to pay for the fuel each day and is not getting any credit from the suppliers.
At the centre of the crisis is the grounding of about half of its aircraft fleet of the Airbus A320 family due to issues with its Pratt & Whitney (P&W) engines and lease rental payment delays. Salary delays have become a regular occurrence at Go First over the recent past.
Reports from the United States suggest that the airline has filed an emergency petition in Delaware against P&W, stating that there is a “significant risk” of the airline going out of business and declaring bankruptcy if it does not receive engines soon. Comments are awaited from the airline in this regard as well.
First published on: 02-05-2023 at 16:06 IST
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