‘Doing everything possible’; Go First CEO Kaushik Khona assures employees

“We are doing everything possible to navigate the situation with utmost care, concern for all employees,” Go First CEO Kaushik Khona has told staff.

Khona has informed staff that persistent Pratt & Whitney engine issues had rendered the airline inoperable and has reassured them that the carrier is making every effort to handle the matter with the utmost care and regard for all staff.

The no-frills airline has requested voluntary insolvency procedures and suspended all operations for three days beginning on Wednesday.

Also Read: Go First cancels flights, files for insolvency

The airline's management has been attempting to get P&W to deliver spare engines and repair engines for more than a year. The CEO added that P&W had proceeded to Emergency Arbitration in Singapore but that they had been stalling the discussions.

The adjudicator reportedly ordered P&W to provide at least 10 functional spare leased engines by April 27 and an additional 10 functional spare leased engines each month until December 2023, according to the airline.

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"With that, the airline would have had all its A320 neo aircraft operational by August/ September 2023... unfortunately, Pratt & Whitney has chosen to defy the order from the Emergency Arbitrator," Khona said in the message.

The airline contacted the arbitrator, who confirmed the ruling, and after P&W "chose to defy for the second time," it initiated an enforcement action in a US court to have the ruling carried out, he continued. Due to engine problems, more than half of the airline's fleet is grounded.

Khona claimed that due to the airline's diminished fleet size, lessors are using coercive measures against them, including letters of credit, grounding orders, and demands for the return of aircraft, to prevent them from being paid.

Also Read: Serial engine troubles clip Go First’s wings

"... The company has been crippled by the recurring Pratt & Whitney engine troubles. Pratt & Whitney's defiance in not supplying spare engines as instructed by the Emergency Arbitrator has ground your company to a halt," Khona told the staff.

Against this backdrop, Khona said there was no other option other than seeking voluntary insolvency resolution proceedings to preserve the company's operations by taking effective steps.

Addressing the employees as "Go Getters", the CEO said, "we want to reassure you that we are doing everything possible to navigate this situation with the utmost care and concern for all employees".

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"I am hopeful that once the application under section 10 of IBC for interim relief is considered, we will be in a better position to update you with a further action plan, as and when we receive orders from NCLT," he added.

Section 10 of the Insolvency and Bankruptcy Code (IBC) pertains to voluntary insolvency resolution proceedings and applications in this regard are filed before the National Company Law Tribunal (NCLT).

(With agency inputs)