Go First in a tailspin, files for insolvency

Airline suspends all flights till Friday, blames P&W engines

- DEEPAK PATEL, ABHIJIT LELE & ANEESH PHADNIS

Wadia-owned Go First on filed for Tuesday insolvency, driven by a cash crunch that resulted from the grounding of nearly half its 57 aircraft.

The airline squarely blamed engine manufacturer Pratt & Whitney for the step and suspended all flights till Friday.

Bankers to the company will hold a meeting on Wednesday for a review and discuss steps to be taken.

For the past few days, the airline has been flying around 200 flights daily, carrying 25,00030,000 passengers a day.

The Directorate General of Civil Aviation has issued show-cause notice to the airline for non-intimation about flights cancelled on May 3 and 4. However, the airline's website says it has cancelled flights not just on May 3 and May 4, but also on May 5.

Panic-stricken customers have begun cancelling their tickets for future dates too, according to travel industry sources. Even refunds were not being processed on Monday, an executive of an online travel agency said.

Meanwhile, fuel supplier Indian Oil has decided to put the airline on cash and carry mode for service resumption.