Go First fiasco: Travel agents approach government to recover Rs 900 crore

With portals like MakeMyTrip, Indians can book flight tickets with a few clicks, but a large number of flyers still rely on travel agencies. As opposed to individual travellers, these agents rely on advance bookings in bulk, and can be hit hard in case of sudden cancellations.

As thousands of Go First passengers are awaiting refunds, travel and tourism operators have also approached the government to recover Rs 900 crore stuck with the airline.

Need legal protection against uncertainty

• The Travel Agents Association of India has approached Civil Aviation Minister Jyotiraditya Scindia, seeking his intervention to protect their interests.

• The industry body which has 2,500 members across the country, has also called for a law which can ensure hassle-free refunds for them, if such a situation arises in the future.

• The association said that agents pay advances to low-cost airlines, which have credit shells in their possession to allot bookings.

Major setback on the road to recovery

• Since domestic air traffic was surging past pre-pandemic levels and the summer vacations were approaching, agents had booked Go First flights to 93 per cent of their capacity.

• But as the carrier grounded its entire fleet abruptly and filed for bankruptcy, agents are also left in a lurch like passengers and Go First's staff.

• As of now, Go First's insolvency plea has been admitted by the National Company Law Tribunal, which has also approved a moratorium to the airline against repossession of flights.