Cash-strapped Go First cancels all flights till May 12, promises refunds
Cash-strapped airline Go First on Friday announced the suspension of flights till May 12.
“We apologise for the inconvenience caused by the flight cancellations. A full refund will be issued to the original mode of payment shortly. We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can”, the airline stated.
On Thursday, Go First had announced that it had suspended flights till May 9. In response to this, the Directorate General of Civil Aviation had asked the air carrier to offer refund to the affected passengers.
“Go First has intimated that they have suspended sale of their flights till 15 May 2023 and are working to refund or reschedule for future dates, the passengers already booked to fly with them,” the aviation regulator had said in a statement. The airline had already informed the DGCA it had suspended sale of tickets till May 15.
On Tuesday, the airline had filed for voluntary insolvency before the National Company Law Tribunal. The company had said it was forced to ground half of its fleet due to faulty engines supplied by Pratt & Whitney. The company said it has lost revenue worth ₹10,800 crore due to the grounding of close to 50 per cent of its A320neo fleet.
On Monday, the NCLT will hear two petitions seeking insolvency proceedings against the airline. Go First faces liabilities worth ₹11,463 crore and a financial crunch. After hearing a plea by SS Associates Services Pvt Ltd seeking a claim of ₹3 crore, the tribunal reserved its order, PTI reported.
A pilot has also filed a petition claiming dues for his services provided to the airline. The amount involved is more than ₹1 crore. The two petitions are scheduled to be heard by the Principal Bench of the NCLT.
