Go First "Navigating The Situation With Utmost Care", Chief Assures 5000 Scared Employees

The chief of Go First Airways, Kaushik Khona has told its 5,000 scared employees that it is doing everything possible to navigate the situation with utmost care and concern for all. The chief told all it employees that the airline has been crippled by recurring Pratt & Whitney engine troubles.

In a message to employees, Khona said that a terrible crisis has been created by Pratt & Whitney's failure to supply engines. For more than 12 months, the airline's management has tried their level best to convince P&W to provide spare engines, repair engines as er PTI.

Earlier during the day, few company employees raised their concerns of uncertainty as per Business Today. A Business Development Manager at the airline on the condition of anonymity highlighted that the company's financial woes were evident to employees since the airline had delayed pay checks and reimbursements on multiple occasions in the past.

Also, a cabin crew member said, "We don't know what will happen after Friday. Everyone is concerned for the customers and their flights after Friday, but staff is also stuck in uncertainty. Nothing is being communicated to us properly".

She also quipped that the company was "never known as the best employer, they did not pay as well as other airlines, there was lack of benefits as compared to other companies, and they were notorious for paycheck delays, etc."

The cabin crew member also highlighted that she believes the Indian aviation sector is one of the most unstable career options because of the constant airline ramp downs.

For more than 12 months, the airline's management has tried their level best to convince P&W to provide spare engines, repair engines. However, P&W has been stonewalling the discussions, the CEO said, adding that it moved Emergency Arbitration in Singapore.

According to the airline, the arbitrator ordered P&W to supply at least 10 serviceable spare leased engines by April 27 and a further 10 spare leased engines per month until December 2023.

"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 approached the arbitrator, who reinforced the order and since P&W "chose to defy for the second time", it filed enforcement proceedings at a US court seeking implementation of the order, he added.

More than half of the airline's fleet is grounded due to engine issues. With a depleted fleet size, Khona said the airline is not able to generate revenue for the payment of lessors, and as a result, they are taking coercive steps against the company by invoking letters of credit, grounding notices and demanding return of aircraft.

" 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," he 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".

"I am hopeful that once the application under section 10 of Insolvency and Bankruptcy Code (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 IBC pertains to voluntary insolvency resolution proceedings and applications in this regard are filed before the National Company Law Tribunal (NCLT).Go First "Navigating The Situation With Utmost Care", Chief Assures 5000 Scared Employees.