Go Air can resume operations in a week if no planes are confiscated, according to the CEO.
If the bankruptcy court prevents lessors from taking back its aircraft, Go Airlines India Ltd., which failed due to Pratt & Whitney engine issues, is hopeful about starting flights again within seven days.
According to Chief Executive Officer Kaushik Khona in an interview on Saturday, the airline, which is owned by the business empire of billionaire Nusli Wadia, has enough money to continue operating on a cash-and-carry basis for around ten days. According to him, Go Air is also attempting to apply for an unpaid emergency credit for which it is qualified under a government of India initiative to support pandemic-affected companies.
If the court begins the insolvency resolution procedure "immediately," we will be able to save the airline with absolute certainty, declared Khona. "All of our stakeholders, including oil suppliers and service providers, agree that we have been open and cooperative with them constantly."
Following the grounding of half of its Airbus SE A320neo fleet due to engine issues, which cost the airline 108 billion rupees ($1.3 billion) in lost income and additional expenses, Go Air, now known as Go First, filed for insolvency protection on Tuesday. According to the chief executive, it has asked India's bankruptcy court for a moratorium to prevent lessors from taking back its aircraft and creditors from cashing guarantees and letters of credit.
Lessors like Dublin's GY Aviation Lease, SMBC Aviation Capital, and Pembroke Aircraft Leasing begun moving in to take back ownership of at least 20 Airbus planes even though the court hasn't yet issued its final decision following Thursday's hearing.
Prior to the busy summer travel season, Pratt engine issues have impacted the airline sector globally. A third of Deutsche Lufthansa AG's A220 fleet is now grounded in Zurich due to Pratt engine problems. Turkish Airlines has asked Pratt for leased engines and assistance in repairing their stranded A320neo aircraft.
According to Go Air, the Pratt engines' combustor decayed considerably more quickly than it should have, leading to shutdowns and premature failures. Out of the 510 problematic GTF engines that had to be replaced and switched between 2016 and February 2023 due to a technical issue, the airline was compelled to remove 140 engines.
According to Khona, Go Air has 16 undeliverable Airbus planes. The airline is in communication with the European aircraft manufacturer about the problems with the engines and has requested that it postpone the delivery of three jets. The airline owes creditors roughly 39 billion rupees, which are secured by its own property and the 30 billion rupee land holding of its owner, the Wadia Group.
We actively want the airline to continue operating, "Khona, who led Go Air for three years through 2011 before returning in 2020, stated. "This airline holds a lot of sentimental value for me. I raised Go Air from birth."