According to a senior source, the civil aviation ministry is closely monitoring the events at crisis-hit Go First and the procedures that are anticipated in the National Company Law Tribunal (NCLT) this week.
As more than half of its fleet is grounded due to the lack of Pratt & Whitney engines, Go First is in a dire financial situation. On Tuesday, the company filed for voluntary insolvency resolution proceedings before the NCLT and decided to cancel all flights for May 3 and 4.
In light of this, the senior government official said that the ministry is closely monitoring the events involving Go First, including the NCLT's acceptance of the airline's application.
The source noted that while the nation's civil aviation industry is robust and expanding, the fundamental cause of the Go First crisis is an external problem with global supply chain interruptions.
On April 30, domestic air travel reached a “all-time high” with 4,56,082 passengers in a single day.
In the first three months of this year, Go First, which has been operating for more than 17 years, transported 29.11 lakh domestic passengers, giving it a 7.8% market share.