Go First airlines, currently undergoing insolvency resolution proceedings, has announced an extension of its flight cancellations until May 28. The airline initially suspended operations until May 25 for operational reasons but cited ongoing financial difficulties as the reason for the further extension. Despite the challenges, Go First expressed optimism about resuming bookings in the near future.
The Directorate General of Civil Aviation (DGCA) has requested the airline to refund passengers affected by the flight cancellations and will also conduct an audit to assess Go First's preparedness for restarting operations.
Flight Cancellations Extended
Go First, amidst a persistent financial crisis, has prolonged the suspension of its flight operations until May 28. The initial suspension until May 25, attributed to operational issues, has now been further extended. The airline remains hopeful of resuming bookings shortly, despite the ongoing challenges, stated a report in India Today.
Insolvency Resolution Proceedings
Go First is currently undergoing insolvency resolution proceedings, which have led to the disruption of its flight operations. On May 3, the airline officially announced the suspension of its flights, reflecting the severity of its financial situation. The insolvency resolution process aims to address the airline's financial difficulties and provide a pathway for its potential recovery.
Refunds for Passengers
In response to the flight cancellations, the DGCA has directed Go First to refund passengers who had booked tickets for the canceled flights. This measure is aimed at mitigating the inconvenience caused to customers. The airline has temporarily halted the sale of tickets until May 15, further emphasizing the challenges it faces in resuming normal operations.
DGCA Audit
To evaluate Go First's readiness to recommence its operations, the DGCA is planning to conduct an audit of the cash-strapped carrier. The audit will assess various aspects of the airline's preparedness and compliance with aviation regulations. This step highlights the importance of ensuring the safety and efficiency of operations as Go First navigates through its financial crisis.
Assurances from CEO
Go First CEO, Kaushik Khona, has assured employees that their April salaries will be credited prior to resuming operations. This commitment reflects the airline's efforts to prioritize employee welfare amidst the financial turmoil it currently faces.
Pratt & Whitney Engines Blamed
Go First has attributed its financial crisis to engines manufactured by Pratt & Whitney, a company owned by Raytheon (RTX.N). The airline's financial difficulties are believed to be linked to issues related to these engines. Identifying the cause of the crisis is crucial for resolving the situation and preventing similar challenges in the future.
