As crisis-laden Go First undergoes insolvency resolution proceedings due to cash crunch, Union Aviation Minister Jyotiraditya Scindia on May 18 addressed the issue and said that it is "certainly something that is not a great thing for civil aviation."
Speaking to reporters, Scindia noted that although Go First's financial problems encompass the civil aviation sector, each company has to manage its own issues. "As far as the Ministry is concerned, we are quite steadfast in our resolve in terms of helping airlines with whatever fundamental issues there are...," the minister added.
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Meanwhile, facing sever issues and backlash from its lessors, the domestic carrier has extended the suspension of flight operations till May 26, citing operational reasons and expressed hope that it will be able to resume bookings shortly.
Go First, which is undergoing insolvency resolution proceedings, stopped flying from May 3. Further, aviation regulator DGCA had directed the cash-strapped airline to stop bookings till further orders.
The National Company Law Tribunal (NCLT) admitted the airline's voluntary plea insolvency resolution proceedings on May 10. Abhilash Lal has been appointed as the Interim Resolution Professional (IRP) to manage the affairs of the carrier.
It may be noted that the National Company Law Appellate Tribunal (NCLAT) will pass its order on May 22 on petitions filed by three aircraft lessors against Go First's voluntary insolvency resolution proceedings.
Some lessors have also moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT's decision.
So far this month, lessors have approached the Directorate General of Civil Aviation (DGCA) for the deregistration of 45 Go First planes.
Additionally, claim management portal 'gofirstclaims.in/claims' has been launched for the Corporate Insolvency Resolution Process (CIRP) of Go First.
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