Cash-strapped Go Airlines (India) Ltd is unlikely to get a government bailout unless something could be done about the engine supply bottleneck, an Indian minister said.
The low-cost carrier, which sought bankruptcy protection last week, was until recently was the country's fourth-largest airline by passengers flown. In its insolvency filing, it had blamed "faulty" Pratt & Whitney engines for the grounding of about half its fleet of 54 Airbus A320neos.
Minister of State for Aviation VK Singh said the government has offered help to US-based Pratt & Whitney.
"The problem with Go Air is that their flights are run on engines of Pratt & Whitney which is facing management issues since after COVID-19… So (engine) manufacturing is not happening at the pace that it should have," Singh told news agency ANI.
"What can be done about a bailout? Where will Pratt & Whitney get (engines)? Bailout can only happen when something can be done about this," Singh said in response to a question about the possibility of a government bailout.
Pratt & Whitney, part of Raytheon Technologies, had previously told an arbitrator that the airline's claim of defective engines causing its demise was "astounding" and without evidence.
Vistara and Air India owners Tata Group and IndiGo are reportedly holding separate negotiations with Go Air's lessors, as well as discussing landing and parking slots with airport operators, including in New Delhi and Mumbai.
Go Air's lessors are seeking to repossess 36 aircraft, filings with India's aviation regulator show.
Go First, which has been flying for nearly two decades, is the first major Indian airline to collapse since 2019, when Jet Airways went under.
Go First yesterday called on the company law tribunal to urgently grant its request for bankruptcy protection, as more lessors sought to repossess planes and the aviation regulator told the carrier to stop selling new tickets.