Friday, 26 May 2023

Go First crisis: Airline extends flight cancellations till May 28

Cash-strapped Go First airline has extended its flight cancellations till May 28, India Today reported on Thursday. Earlier, the suspension of flight operations was announced till May 26. The troubled airline, which is undergoing insolvency resolution proceedings, had expressed hope that it would be able to resume bookings shortly.

Earlier, the aviation regulator Directorate General of Civil Aviation (DGCA) had asked the airline to refund passengers who have booked tickets on canceled flights. The airline has also stopped the sale of tickets. The aviation regulator will reportedly conduct an audit of Go First's preparedness to restart its operations.

Go First CEO Kaushik Khona has assured that employees' April salaries would be credited ahead of resuming operations, according to Reuters.

Meanwhile, the DGCA has asked the budget airline to submit a comprehensive plan for the revival of its operations, including details about the availability of operational planes and pilots, within 30 days, the news agency PTI reported on Thursday. The airline stopped flying on May 3 and lessors are looking to take back aircraft leased to the carrier.

According to the news agency, the aviation regulator advised the airline on May 24 to submit a comprehensive restructuring plan for a sustainable revival of operations. The plan has to be submitted within a period of 30 days.

Go First has been asked to furnish the status of the availability of the operational aircraft fleet, pilots, and other personnel, maintenance arrangements, funding and working capital, and arrangements with lessors and vendors, among other details.

The revival plan, once submitted by Go First, would be reviewed by the watchdog for further appropriate action, the source told PTI. The airline had submitted its response to the show cause notice issued by DGCA on May 8.

In its reply, Go First requested that it may be allowed to use the moratorium period to prepare a comprehensive restructuring plan for restarting operations and present the same to DGCA for approvals before restarting operations, the report said.

The regulator had issued the show cause notice to the airline for its failure to continue the operation of the service in a safe, efficient, and reliable manner.

Go First on May 2 announced filing the plea for voluntary insolvency resolution proceedings as well as suspension of flights, initially for two days -- May 3 and 4. At that time also, DGCA had issued a show cause notice to Go First for cancelling flights for May 3 and 4 "without any prior intimation".

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Go First crisis: Airline extends flight suspension till 28 May | Mint

Domestic airline Go First on Friday announced that all their flights remain suspended till 28 May. Go First had on 2 May filed for involuntary insolvency and announced the suspension of its flights, which was initially for two days.

The airline company, previously known as Go Air, announced that a refund in full amount would be made shortly.

Go First's announcement comes a day after aviation watchdog DGCA asked the cash-strapped airline to submit a comprehensive plan for the revival of its operations, including details about the availability of operational planes and pilots, within 30 days.

The airline cited ‘operational reasons’ for the cancellations of flights. “We regret to inform that due to operational reasons, Go First flights scheduled till 28th May 2023 have been cancelled. We apologise for the inconvenience caused by the flight cancellations. A full refund will be issued to the original mode of payment shortly" the announcement read.

The airline also noted, “the company will be able to resume bookings shortly."

The no-frills carrier, which is undergoing a voluntary insolvency resolution process, stopped flying on 3 May and lessors are looking to take back aircraft leased to the carrier.

The source at the Directorate General of Civil Aviation (DGCA) said the regulator advised the airline on May 24 to submit a comprehensive restructuring plan for a sustainable revival of operations. The plan has to be submitted within a period of 30 days, the source added.

Go First has been asked to furnish the status of the availability of the operational aircraft fleet, pilots and other personnel, maintenance arrangements, funding and working capital, and arrangements with lessors and vendors, among other details.

The revival plan, once submitted by Go First, would be reviewed by the watchdog for further appropriate action. 

On May 2, Go First announced filing the plea for voluntary insolvency resolution proceedings as well as suspension of flights, initially for two days -- 3 and 4 May.

On May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the NCLT's decision to admit Go First's plea for voluntary insolvency resolution proceedings.

The ruling had come on petitions filed by four lessors opposing the insolvency resolution proceedings of the airline.

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Go First crisis: Airline extends flight cancellations till May 28

Cash-strapped Go First airline has extended its flight cancellations till May 28, India Today reported on Thursday. Earlier, the suspension...