Mumbai: ‘Go First’ on Friday announced that it will extend flight cancellations further till May 23 due to “operational reasons”.
The Wadia-Group-owned budget carrier had earlier suspended all its flights till May 19. This comes after the National Company Law Tribunal (NCLT) admitted the airline’s voluntary insolvency resolution petition and appointed an Interim Resolution Professional (IRP) to manage the carrier on May 10.
The airline in a notification said, “Due to operational reasons, Go First flights until 23rd May 2023 are cancelled. We apologise for the inconvenience caused and request customers to visit https://t.co/qRNQ4oQROr for more information.”
“We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can…. As you are aware, the company has filed an application for immediate resolution and revival of operations We will be able to resume bookings shortly. Thank you for your patience,” Go First added, requesting customers to be patient.
The airline also promised that a full refund of the ticket prices would be made to the original mode of payment soon.
The crisis-hit airline was first halted on May 2 and filed for voluntary insolvency citing “faulty” Pratt & Whitney engines that grounded about half its 54 Airbus A320neos.
On Wednesday, the NCLT admitted Go First’s voluntary plea to initiate insolvency resolution proceedings. A two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta appointed Abhliash Lal as interim resolution professional (IRP) to run the debt-ridden firm. Besides, there is a moratorium on the assets and liabilities, which also means that lessors cannot take back the planes leased to the crisis-hit Go First during the process.
Meanwhile, aircraft lessor SMBC Capital has told appellate tribunal NCLAT that the Indian aviation sector is being seen as a risky jurisdiction in light of the fate of Kingfisher and Jet Airways, as it vehemently opposed cash-strapped Go First’s insolvency resolution proceedings.
Describing Go First’s petition as “malicious and a smokescreen”, SMBC Capital also said that voluntary insolvency proceedings cannot be an escape route by promoters who have run the corporate debtor/ corporate applicant into the ground to escape the consequences of such defaults.
