Mumbai - Go First, a low-cost airline in India, has declared bankruptcy protection and, as a result, has cancelled all its flights for the next three days. The company has promised to reimburse all passengers who have been impacted by the cancellations. Go First is the first significant airline in India to go bankrupt since Jet Airways' collapse in 2019. The airline has attributed its financial difficulties to the grounding of many of its planes, which was caused by issues with engines manufactured by US Company Pratt & Whitney.

In a statement, Go First explained that the escalating number of faulty engines supplied by Pratt & Whitney compelled the company to take this action. As a result, approximately 50% of its fleet of Airbus A320neo planes, or 25 aircraft, had to be grounded, resulting in a loss of revenue and expenses amounting to roughly 108 billion rupees (£1 billion; $1.3 billion).

According to the airline, Pratt & Whitney did not abide by an emergency arbitrator's order to provide "at least 10 serviceable spare leased engines by 27 April 2023." In its defense, Pratt & Whitney stated that it is complying with the arbitration ruling from March 2023 and declined to comment further, citing the ongoing litigation surrounding the matter.

Jyotiraditya Scindia, India's Civil Aviation Minister, stated that the Indian government has been providing Go First, owned by the Wadia Group, with all the necessary support. The airline's collapse highlights the intense rivalry within India's aviation industry.

The country's second and third largest airlines, Air India and Vistara, declared their intention to merge in November. Meanwhile, in 2019, Jet Airways, one of India's largest airlines, was forced to cease operations due to its struggle with over $1 billion (£800 million) in debt. Despite efforts to restart, the airline has not been able to do so yet due to the lengthy insolvency process it is undergoing.