Indian low-cost Go First, deep in debt, has announced it canceled all scheduled flights until Feb. 4 after first suspending operations in May. Photo by Sharjilrishal/Wikimedia Commons
Indian low-cost Go First, deep in debt, has announced it canceled all scheduled flights until Feb. 4 after first suspending operations in May.
Observers reported that no investors have expressed desire to backg the airline, which could result in liquidation. Advertisement
Billionaire Naveen Jindal had been interested in resuscitating the carrier, but he has backed out, according to the Hindustan Times. And on Dec. 1, the chief executive officer, Kaushika Khona announced his resignation, causing investors to lose confidence in the airline.
At its peak, Go First operated some 330 daily flights to 36 destinations. Twenty-seven were 27 domestic and nine were international.
With 54 Airbus A320s, Go First was the second-largest airline in India by market share two years ago. But it lost $218 million for fiscal 2022, and filed for bankruptcy in May.
The airline, first known as GoAir, turned a profit until 2019, rebranded itself in 2021 and was hit with a major decline in passenger revenue caused by the COVID-19 pandemic.
Troubles deepened, the airline said, when Pratt & Whitney recalled engines used on half of its fleet, which then had to be grounded by September 2022. With half its planes grounded, Go First could not generate enough revenue to meet costs. Advertisement
The airline said it has an outstanding debt of $780 million, but has not moved toward liquidation.
