According to those familiar with the airline’s plans, First intends to resume its flight operations by May 24. According to sources, the airline intends to restart 23 aircraft with a scaled-down operation.
27 Go First aircraft were in use as of May 2.
“It has 51 and 37 departure slots at the main airports of Delhi and Mumbai. There is a plan to resume operation as early as possible but it will be with a truncated schedule,” a person aware of the matter was quoted by ET.
Earlier yesterday, the company confirmed that it has cancelled all its flights till May 19. Prior to that, the cancellations were till May 12. The airline said a full refund would be made to the original means of payment shortly.
The National Company Law Tribunal (NCLT) also decided to offer Go First protection against recovery by lessors and lenders under a moratorium.
In its ruling, NCLT had stated, “We admit Go Airlines’ request for insolvency proceedings.” Besides, NCLT also ordered to keep corporation as a continuing concern and guarantee that no employee gets retrenched.
After the NCLT verdict, Go First CEO Kaushik Khona said, “This is a historic ruling since an application of insolvency has been admitted so rapidly. The order prevents a viable airline from becoming an unviable one. IBC has always sought to promote regeneration.
This is the first time an Indian airline has voluntarily sought bankruptcy protection to renegotiate contracts and debt. However, the action may hinder lessors’ attempts to reclaim their aircraft, as they recently submitted petitions to India’s aviation regulator for the return of roughly 40 Go First flight after rental payments were missed.
The low-cost carrier, newly rebranded as Go First, has stated its financial issue was precipitated by what it called “faulty” Pratt & Whitney engines that grounded roughly half its 54 Airbus A320neos. The US engine producer, part of Raytheon Technologies, has maintained the charges are without evidence.
Also Read: TCS onboards 44,000 freshers in FY23, honors all job offers
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK
