India's Go First cancels all flights after bankruptcy

Indian budget airline Go First has canceled all of its flights for the next three days after filing for bankruptcy protection.

The carrier says "a full refund will be issued" to affected customers.

It is the first major airline in the South Asia's top economy to file for bankruptcy since Jet Airways went bust in 2019.

Go First blamed US engine maker Pratt & Whitney for having to ground many of its planes, which it says caused a severe cash flow problem.

The company "had to take this step due to the ever-increasing number of failing engines supplied by Pratt & Whitney," Go First said in a statement.

Go First said that the problem forced it to ground 25 aircraft - about half of its fleet of Airbus A320neo planes - which caused about 108bn rupees (£1bn; $1.3bn) in lost revenue and expenses.

The airline also accused Pratt & Whitney of not following an order by an emergency arbitrator, which included supplying "at least 10 serviceable spare leased engines by 27 April 2023".

In response, Pratt & Whitney said it was "complying with the March 2023 arbitration ruling" and it cannot comment further as "this is now a matter of litigation".

India's Civil Aviation Minister Jyotiraditya Scindia said:" The government of India has been assisting the airline in every possible manner."

The collapse of Go First, which is owned by Indian conglomerate Wadia Group, underscores the fierce competition in the country's airline sector.

In November, the country's second and third largest carriers - Air India and Vistara - announced that they planned to merge.

In 2019, Jet Airways, which was at the time one of India's biggest airlines, was grounded after struggling with more than $1bn (£800m) of debt.

It has so far been unable to restart operations due facing a lengthy insolvency process.