Indian no-frills air carrier Go First files for bankruptcy

By AP News

Thousands of travelers have been stranded after no-frills Indian air carrier Go First filed for bankruptcy and suspended its flights for three days starting Wednesday

India Bankrupt Airline

NEW DELHI (AP) — No-frills Indian air carrier Go First filed for bankruptcy and suspended its flights for three days starting Wednesday, causing hardships for thousands of fliers.

A statement on the carrier’s website on Tuesday said the cancellations were caused by operational reasons. "A full refund will be issued to the original mode of payment shortly,” the statement said.

In a message to employees on Tuesday, airline chief Kaushik Khona said Pratt & Whitney had failed to supply it with replacements for faulty aircraft engines, the Press Trust of India news agency said. Pratt & Whitney, an American aerospace manufacturer with global operations, had no immediate comment.

Khona said the carrier was doing everything possible to navigate the situation with utmost care and concern for all staff.

Go First had an average of 30,000 daily domestic flyers in March, so the disruption in flights is expected to affect about 90,000 passengers, media reports said.

Nitesh Jain, a businessman, was attempting to buy tickets for his family on another airline at a higher price.

"I booked tickets four months back to save money and now the tickets have been canceled. It's the airline’s responsibility to arrange alternate flights for us.”

The airline is owned by India’s Wadia group.

Civil Aviation Minister Jyotiraditya Scindi said the government was helping the airline.

“Go First has been faced with critical supply chain issues with regard to its engines. The government has been assisting the airline in every possible manner,” he said.

The Indian Express daily said the company's trouble with engines forced it to ground half of its fleet of about 60 aircraft.

IMPORTANT NOTICE AND DISCLAIMER

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for Investing Intel Newsletter