Go First Airlines: All flights cancel on May 3 and 4

Amid cash crunch, Go First Airlines on Tuesday said that it has suspended flights for May 3 and 4 as it has been facing issues due to uncleared dues to oil marketing companies. Go First Airlines: All flights cancel on May 3 and 4. The airline’s cash flow has been seriously hit as it has grounded over half of its fleet due to issues with Pratt & Whitney engines.

After the crisis, the Wadia-group owned airline is also eyeing for a strategic investor in the company and has been in talks with several investors. Meanwhile, the airline had earlier denied reports that Wadia group, which owns the ultra-low-cost carrier, has sought to sell stake in the company in order to exit the aviation business.

A cash-and-carry model means Go First must pay OMCs daily for each flight it operates. This means OMCs can stop supply if payments are not made on time. Cash-strapped Go First has been struggling to raise funds in recent weeks after posting its biggest annual loss in fiscal 2022. Its woes have been

In fiscal 2022 Go First posted its and its dire financial condition has been worsened by operational issues in the wake of supply chain disruptions related to the Pratt & Whitney jet engines that power its planes. Last month Reuters reported owners Wadia Group were in talks with strategic partners to either sell a majority stake or completely exit the loss-making firm.

Also last month Go First denied rumours it would exit the aviation business due to its financial problems. A senior airline official told news agency ANI there were ‘no plans to shed stake or exit the aviation business’ and that the promoters were ‘committed to the business and are infusing further funds…’

The same official claimed Go First would receive Rs 600 crore in the form of promoter equity and bank loans by April-end. It is unclear if this has happened. The official also blamed the Covid pandemic and Russia’s war on Ukraine, saying it had affected the supply of jet engines to the airline.

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