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Go First grounded half its fleet on faulty P&W engines — then filed for bankruptcy

India's Go First blamed Pratt & Whitney engine failures for grounding 25 planes. Lost ₹1,080 crore ($1.3bn) in revenue, filed for bankruptcy in May 2023.

Go First · 2023-05-03

What happened

Go First (formerly GoAir) was a low-cost Indian airline founded in 2005, wholly owned by the Wadia Group. By 2023 it operated about 50 Airbus A320neo aircraft, nearly all powered by Pratt & Whitney's geared turbofan engines. The airline had bet its entire fleet strategy on a single engine supplier — a decision that would prove catastrophic when those engines began failing at scale.

Starting around 2020, Pratt & Whitney engines on Go First's A320neos developed chronic reliability problems. The airline was forced to ground about half its fleet — 25 aircraft — due to a shortage of spare engines and replacement parts. Go First estimated the revenue loss and additional expenses from the grounded planes at 108 billion rupees ($1.3 billion; £1 billion). The Wadia Group injected 32 billion rupees over three years to keep the airline alive, but the cash drain was unsustainable.

On 2 May 2023, Go First filed for voluntary insolvency and cancelled all flights. The airline blamed Pratt & Whitney for failing to comply with an emergency arbitration order requiring the supply of at least 10 spare engines by 27 April 2023. Lessors moved to repossess aircraft. The Indian government had provided emergency credit line support, but it was not enough. Go First became the first major Indian airline to collapse since Jet Airways in 2019.

Why it happened

  • Go First committed its entire fleet to a single engine type — Pratt & Whitney geared turbofans — creating concentrated supplier risk with no fallback
  • When the engines began failing at scale from 2020, half the fleet was grounded, crippling revenue while fixed costs continued
  • Arbitration forced Pratt & Whitney to supply spare engines, but the airline said the order was not met in time to prevent the collapse
  • The Wadia Group injected 32 billion rupees over three years, but the cash drain from grounded aircraft exceeded what a single owner could sustain
  • Post-pandemic recovery in Indian aviation created urgent demand for capacity, but Go First had no way to return grounded planes to service quickly
What it cost$1.3bn revenue loss; 25 planes grounded; bankruptcycostly

The lesson

When a single supplier is responsible for every plane in your fleet, their failure is your failure. Go First bet its entire business on Pratt & Whitney's engine reliability and had no Plan B.

Aftermath

Go First's 54 aircraft were deregistered by May 2024. Lessors took back planes. A resolution bid of ₹600 crore from Ajay Singh and Nishant Pitti was submitted in February 2024, but as of mid-2024 the insolvency process remained unresolved. The case became a cautionary tale in Indian aviation about single-supplier concentration risk and the consequences of relying on unproven engine technology.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →