Go First Reportedly Plans to Resume Flight Operations from May 27
Written by Sanjay Kumar
Go First
Airline
- Parent organizations: Wadia Group, Sevakunj Investments & Trading Co. Pvt Ltd.
- Hubs: Indira Gandhi International Airport, MORE
- Founder: Jehangir Wadia
- Founded: 2005
- Headquarters: Mumbai
Go First, the crisis-hit budget carrier, is making plans to resume its flight operations from May 27, according to reports. To prepare for the upcoming flights, the carrier has initiated training sessions for its pilots. These sessions are being organized because of the pause in flights since May 3. It’s important to note that the reports of the resumption of operations have not been confirmed yet.
This announcement comes after the airline declared the cancellation of all flight operations until May 26, citing “operations reasons” in a prior announcement. However, experts remain doubtful about the resumption of operations due to half of the airline’s fleet still being grounded. Additionally, the airline is facing issues with aircraft lessors, as they contest the bankruptcy court’s decision to impose a moratorium on aircraft in court.
On May 10, the National Company Law Tribunal (NCLT) accepted the airline’s voluntary plea for insolvency resolution proceedings. Abhilash Lal has been appointed as the carrier’s Interim Resolution Professional (IRP). Some lessors have also appealed the NCLT’s ruling to the National Company Law Appellate Tribunal (NCLAT).
On May 8, Go First received a show cause notice from the Directorate General of Civil Aviation (DGCA), inquiring about its inability to operate within the allotted 15 days. As a consequence, the aviation authorities blocked the airline’s ability to accept new reservations and halted ticket sales.
The airline has encountered significant challenges recently. Therefore, Go First’s plans for a resurgence signify a potential comeback for the company. Through the proposed measures, the airline aims to regain stability and reconstruct its business gradually, with the ultimate goal of resuming its air travel services for clients.
What is the Go First crisis?
Go First, the latest addition to the list of Indian airlines facing turbulence, has filed for bankruptcy, becoming the second airline in the country to do so in the span of four years. Following in the footsteps of Jet Airways, which declared bankruptcy in 2019, Go First currently holds a total debt of INR 65.21 billion to financial creditors as of April 28. Among its financial obligations, the airline owes approximately INR 2,600 crore to multiple aircraft lessors, including SMBC Aviation, CDB Aviation’s GY Aviation Leasing, Jackson Square Aviation, and BOC Aviation.
Blaming its engine suppliers, Pratt and Whitney, Go First attributes the current crisis to the faulty engines provided by the company. According to Go First, these faulty engines caused disruptions to their flights, resulting in significant losses for the carrier.
To support its claim, Go First presents data that highlights the impact of grounded aircraft attributed to Pratt and Whitney’s faulty engines. The percentage of grounded aircraft due to engine issues rose from 7% in December 2019 to 50% in December 2022. This escalation in grounded aircraft has led to an estimated loss of INR 108 billion in revenue and additional expenses for the airline.
Must Read:-
- Top 10 Largest Oceans and Seas in the World
- Top 10 automobile companies in India 2023
- Top 10 Electrical Companies in India 2023
- Top 10 Real Estate Companies in India-2023
- Top 10 most awaited & upcoming Hindi web series 2023-24
- Top 10 Clothing Brands in India 2023
- Top 10 best cultures in the world-2023
- Top 10 best country to work and live in 2023
- Top 10 best country for education 2023
- Top 10 Most Followed Celebrities on Instagram 2023
- The Inspiring Success Story of Bear Grylls
- Top 10 Business Coaches in The World to Guide Entrepreneurs In 2023
- Top 10 movies based on True Stories you must watch before you die
- Top 10 Best Online Doctor Consultation Apps in USA
