Beleaguered Go Airlines India Ltd. has been asked to stop selling tickets after it filed for insolvency amid what it called repeated failures of Pratt and Whitney aircraft engines.
(Bloomberg) — Beleaguered Go Airlines India Ltd. has been asked to stop selling tickets after it filed for insolvency amid what it called repeated failures of Pratt and Whitney aircraft engines.
The Indian aviation regulator said in a statement Monday it will decide in 15 days whether the airline’s operating license should be continued or not. By abruptly canceling flights, the airline failed to provide “service in a safe, efficient and reliable manner,” the Directorate General of Civil Aviation said.
Go Air, which has half of its Airbus SE. fleet on the ground, had to change and swap 510 faulty Pratt-built GTF engines between 2016 and February this year, it said. The powerplants failed prematurely and shut down as the combustor deteriorated faster than expected. The airline has lost 108 billion rupees ($1.3 billion) due to the planes being out of service.
The aviation regulator’s website showed that 13 lessors, including Dublin-based Sky High XCV Leasing Ltd. and ACG Aircraft Leasing Ireland Ltd., are seeking to take back the airline’s Airbus aircraft. Last week, lessors including GY Aviation Lease, SMBC Aviation Capital and Pembroke Aircraft applied to the regulator to deregister at least 20 jets.
Such a move will hurt Go Air’s revival plans. Chief Executive Officer Kaushik Khona on Saturday said he is hopeful of resuming flights within seven days if the bankruptcy court restricts lessors from seizing planes.
Carriers globally have been hit by a shortage of engines and spare parts. Deutsche Lufthansa AG has a third of its A220 fleet temporarily grounded in Zurich because of issues with Pratt engines. IndiGo, India’s biggest airline, is seeking compensation from engine makers for some 30 grounded planes.
Go Air filed for insolvency last week, seeking protection from lessors and creditors. The court is yet to deliver its final ruling.
(Updates with details on deregistration of aircraft in fourth paragraph.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.