Low-cost carrier Go First has filed for bankruptcy at the National Company Law Tribunal due to mounting losses, which it has attributed to delays in the delivery of Pratt and Whitney engines, resulting in the grounding of half its fleet of aircraft.
The airline has also suspended its flight operations for the next three days. The Directorate General of Civil Aviation has served a show cause notice to the airline for the sudden cancellation of flights without sharing prior information with it.
The airline has sought a compensation of approximately ₹8,000 crore in the Singapore International Arbitration Centre arbitration, and said that if the arbitration was successful, it would be able to pay dues to its creditors. The DGCA has given the airline 24 hours to submit its plan of action to resume flights.