The Wadia group Go First announced on Tuesday that it has filed for insolvency resolution because it is unable to pay its debts and that 50% of its fleet has been grounded due to “faulty engines” manufactured by US firm Pratt & Whitney. According to CEO Kaushik Khona, the airline has requested voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT).

Many aircraft from Go First and Indigo have also grounded a few months ago due to problems with the engine supply chain. Since Indigo was having similar problems, it was a wise decision for it to switch to CFM engines. In order to power its fleet of 310 brand-new Airbus A320neo, A321neo, and A321XLR aircraft, IndiGo has chosen CFM International LEAP-1A engines. This contract includes 620 newly installed engines, 620 spare engines, and a lengthy, multi-year service contract, and 620 newly installed engines.

After Go First made the decision to cancel flights for three days, the aviation regulator DGCA has given the airline a show cause notice. The airline has been ordered to submit information on the measures taken to lessen the inconvenience to passengers who had tickets for the canceled flights, as well as a plan of action to operate flights in accordance with the authorized schedule beginning on May 5, 2023.

The foremost low-cost airline in India, Go First, holds a significant market share in the aviation sector and runs domestic and international flights. The airlines suffered significant losses as a result of the engine problems, leaving them with inadequate funds to run their operations.

In a statement regarding its bankruptcy filing, the airline stated: “Go First has had to take this step as a result of the steadily rising number of failing engines supplied by Pratt & Whitney’s International Aero Engines, LLC, which has resulted in Go First having to ground 25 aircraft (equivalent to roughly 50% of its Airbus A320neo aircraft fleet) as of 1 May 2023. As a result of Pratt & Whitney’s defective engines, more aircraft will be grounded, increasing the rate from 7% in December 2019 to 50% in December 2022. This is true even though Pratt & Whitney has consistently broken promises it has made over the years.

As of March 31, Go First had grounded 30 aircraft, according to industry officials. There are nine aircraft in this number for which lease payments are required. Go First has 61 aircraft in its fleet, including 56 A320neos and five A320ceos, according to the airline’s website. There is a loss of passenger revenue when airfares are expensive and traffic is at an all-time high as a result of the outbreak. With the current summer schedule, the airline expects to operate 1,538 flights per week, which is 40 fewer than in 2017. The season currently underway started on March 26 and will end on October 28.