Go First Airlines has moved the National Company Law Tribunal (NCLT), Delhi seeking voluntary initiation of insolvency proceedings. .The company moved the tribunal claiming that its flights were being grounded due to the recurring and persistent issues with engines supplied by American company, Pratt & Whitney (P&W).In fact, the company also issued a statement on its Twitter handle saying that it would temporarily suspend all flight operations between May 3 to 5, 2023..The plea under Section 7 of the Insolvency and Bankruptcy Code was mentioned by Senior Advocate P Nagesh before the Chairperson of NCLT.The tribunal will hear the plea filed through Advocates Pranjal Kishore and Akshay Sharma tomorrow..The company reportedly filed for voluntary insolency because it could no longer continue to meet financial obligations. It claimed that due to the faulty engines of P&W, it was compelled to ground 28 flights, which was more than 50% of its fleet.The company also alleged that P&W failed to repair the engines or provide suitable spares as per the contractual agreement. .The airline had filed a plea against P&W in the federal court at Delaware, United States seeking enforcement of an arbitral award. The award of March 30 in favour of Go First Airlines directed P&W to provide the airline with engines, failing which there was a risk of the airline shutting down.
Go First Airlines has moved the National Company Law Tribunal (NCLT), Delhi seeking voluntary initiation of insolvency proceedings. .The company moved the tribunal claiming that its flights were being grounded due to the recurring and persistent issues with engines supplied by American company, Pratt & Whitney (P&W).In fact, the company also issued a statement on its Twitter handle saying that it would temporarily suspend all flight operations between May 3 to 5, 2023..The plea under Section 7 of the Insolvency and Bankruptcy Code was mentioned by Senior Advocate P Nagesh before the Chairperson of NCLT.The tribunal will hear the plea filed through Advocates Pranjal Kishore and Akshay Sharma tomorrow..The company reportedly filed for voluntary insolency because it could no longer continue to meet financial obligations. It claimed that due to the faulty engines of P&W, it was compelled to ground 28 flights, which was more than 50% of its fleet.The company also alleged that P&W failed to repair the engines or provide suitable spares as per the contractual agreement. .The airline had filed a plea against P&W in the federal court at Delaware, United States seeking enforcement of an arbitral award. The award of March 30 in favour of Go First Airlines directed P&W to provide the airline with engines, failing which there was a risk of the airline shutting down.
