Go First's absence from ticket booking sites and runways has led to price hikes with rising demand for air travel, but the airline says that even if Pratt & Whitney supply engines, it can resume full operations by September. As another carrier SpiceJet has received an insolvency notice, there are fears of a duopoly in the Indian aviation market if airlines keep getting grounded.
As Go First resolution is awaited, the return of Jet Airways has once again been delayed, four years after it had to shut down operations due to bankruptcy.
Repeated setbacks for Jet
After the recent exit of its CEO Sanjiv Kapoor, the Jalan Karlrock consortium that was the winning bidder for Jet Airways, has asked for more time to repay creditors.
It has asked for the extension, four days before it was supposed to pay the first installment for clearing Jet Airways' dues on May 15, 2023.
This will in turn push off the implementation of the resolution plan to ensure the relaunch of the debt-hit airline.
Lenders delayed the process?
The consortium has told the National Company Law Tribunal, that it received bank account details from lenders 148 days after November 16, in April.
They claim that since 180 days were set aside to implement the plan, and the lenders took most of the time to share account details, the consortium was only left with a month.
Jalan Karlrock also has to pay Rs 200 crore as gartuity and towards PF for Jet employees, and will need to renew the airline's license which expires on 2019.
