<h5>What is insolvency?</h5><p>Insolvency is a term used to describe a company with a bad financial situation under which it cannot pay its dues. Simply put, the company has more debt than income. As a result, they cannot pay back the money they borrowed from others.</p><p>Assume you have borrowed 500 rupees from your friends to buy a new toy. Now you have spent the entire amount, but you also don't have enough money to repay them. That means you're insolvent. This shows that you owe more money than you have. So, what do you do? You find out you have other toys that you don’t need.</p><p>You sell those toys for 300 rupees and give your friends the money. However, you still owe them 200 rupees. You can ask them to forgive the debt if you can't repay the remaining amount. This means they won't expect you to pay it back. Or you can wait until you have enough money to pay them back.</p><p>It's critical to manage one’s money wisely and not borrow more than one can afford to repay. Doing so will help one avoid becoming insolvent. Recently, an Indian airline company, GoFirst, has declared insolvency.</p><h5>What has happened to GoFirst Airlines?</h5><figure class="image"><img src="https://firebasestorage.googleapis.com/v0/b/newsahoot.appspot.com/o/go-first-airlines-declares-insolvency%2Fa-gofirst-plane-in-the-hangar.jpg?alt=media&amp;token=357676c3-cd78-4ad6-8183-031953c9b59a"><figcaption>All GoFirst aircraft are parked in hangars (just like this one)! Photo by GoFirst.</figcaption></figure><p>GoFirst (previously known as GoAir) had to declare insolvency as they are facing a severe financial shortage. The company has blamed Pratt &amp; Whitney (P&amp;W), a company that supplies them with engines, for this financial situation.</p><p>GoFirst said P&amp;W did not provide them with extra engines. The airline company said it had to cancel flights as the engines supplied by P&amp;W were failing. We all know that without an engine, an aircraft cannot fly. The airline company had to ground 50% of its fleet.</p><p>This has resulted in a financial crisis. With the planes remaining grounded, the company couldn’t earn enough money. So, they have filed for insolvency. The company has suspended all airline operations from 3rd May to 5th May 2023. This has affected thousands of passengers who had bought tickets.</p><p>The airline company has offered a full refund to anyone who purchased tickets for flights scheduled from 3rd May to 5th May 2023.</p><h5>What’s next for GoFirst Airlines?</h5><p>GoFirst has said that it is trying to solve the current situation as soon as possible. The company wants to serve many more passengers in the future. The Indian government is trying to help the airline in any manner possible.</p><p>GoFirst has registered a case against P&amp;W to get the engines supplied quickly. This will help the airline company to resume its operations at the earliest.</p><p>Despite the promise made by GoFirst, there is concern that the company will face the same thing that happened to Jet Airways and Kingfisher Airlines. These two airlines had to stop all their operations permanently after facing a financial crisis for many years.</p><h5>What has Pratt &amp; Whitney said about GoFirst?</h5><p>P&amp;W said that the company is trying to deliver the required parts to all its customers on time. It also said that GoFirst has a long history of delaying or missing payments for the parts supplied to them.</p><p>Let’s hope both companies can solve this issue so that the passengers and employees of GoFirst don’t have to face any further difficulties.</p>

The airline company had to declare insolvency as they are facing a financial shortage.

GoFirst Airlines Declares Insolvency

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GoFirst Airlines Declares Insolvency

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