Cash-strapped airline Go First on Wednesday announced that all of its flights are cancelled until May 19, citing “operational reasons,” while the National Company Law Tribunal (NCLT) accepted its voluntary petition to begin insolvency resolution proceedings.
“Due to operational reasons, Go First flights until 19th May 2023 are cancelled,” the airline announced in a Tweet. It apologised for the inconvenience caused and requested customers to visit its website for more information.
Due to operational reasons, Go First flights until 19th May 2023 are cancelled. We apologise for the inconvenience caused and request customers to visit https://t.co/qRNQ4oQROr for more info. For any queries or concerns, please feel free to contact us. pic.twitter.com/T1WktKJIuZ— GO FIRST (@GoFirstairways) May 10, 2023
“A full refund will be issued to the original mode of payment shortly,” the statement read.
The airline had earlier cancelled all its flights till May 12 and suspended the sale of tickets till May 15. The carrier began cancelling all its flights on May 3 due to a financial crunch caused by the non-delivery of engines by Pratt & Whitney, which resulted in a significant portion of its fleet being grounded.
The Wadia Group-owned carrier, with liabilities totalling Rs 11,463 crore, has requested voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) and an interim moratorium on its financial obligations.
The Directorate General of Civil Aviation (DGCA), on Monday, directed the airline to immediately stop ticket sales and also issued a show cause notice for its failure to continue the operation of the service in a safe, efficient and reliable manner.
Go Fist in its statement on Wednesday said the company has filed an application for immediate resolution and revival of operations. “We will be able to resume bookings shortly,” it said.
NCLT Admits Go First’s Plea to Initiate Insolvency Resolution
Meanwhile, NCLT on Wednesday accepted Go First’s voluntary petition to begin insolvency resolution proceedings against the airline.
The two-member bench, consisting of President Justice Ramalingam Sudhakar and L.N. Gupta, appointed Abhilash Lal as the interim resolution professional (IRP) to oversee the debt-ridden company. The NCLT also imposed a moratorium on the company and directed the suspended board of directors to assist the IRP in managing the company during the insolvency proceedings. Furthermore, the NCLT instructed that the company must remain a going concern, and no employees should be laid off.
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