Wadia-Group-owned budget carrier Go First said on May 12 that it will extend flight cancellations further till May 23, instead of the earlier announced May 19. The cash-strapped airline said that they are cancelling all flights till May 23 due to “operational reasons”.
The airline, which recently filed for insolvency, said in a notification: “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.”
Requesting customers to be patient, Go First said: “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.
ALSO READ: Go First to resume flights on May 24 with reduced schedule, aircraft: Report
The airline also promised that a full refund of the ticket prices would be made to the original mode of payment soon.
The low-cost carrier, recently rebranded as Go First, has said its financial crisis was sparked by "faulty" Pratt & Whitney engines that grounded about half its 54 Airbus A320neos. The US engine maker, part of Raytheon Technologies, has called the claims without evidence.
Go First had first suspended flights and filed for insolvency on May 2.
Also read: Will Go First’s voluntary insolvency set a precedent for future IBC cases? Here’s what experts say
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.
The National Company Law Tribunal (NCLT) on May 10 admitted the airline's voluntary insolvency resolution petition and appointed an Interim Resolution Professional (IRP) to manage the carrier. 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
