Wait gets longer for Go First flyers as refunds hinge on fresh fund-raising

“Passengers, who have booked tickets through travel agents and online portals are likely to see their tickets refunded sooner, but passengers who booked tickets directly on the airline’s website or mobile application may have to wait longer,” the second person said.

A third person in the know said that the airline is hoping that some customers may also be interested in free tickets as compensation once the airline restarts operations.

“Paying the salaries of its employees and providing refunds to passengers is of utmost importance to Go First and its promoters. However, the airline is hoping that some passengers believe in the airline and opt for future tickets instead of direct refunds,” this person said.

He added that if the NCLT promptly hears Go First’s plea and if the Delaware federal court upholds the order by the Singapore International Arbitration Commission (SIAC) in its dispute with engine supplier Pratt and Whitney, the airline will be in a position to restart operations soon and the airline may be able to offer its customers alternative flights as well.

The SIAC had, on March 30, ordered Pratt & Whitney to provide Go First with at least 10 serviceable engines by April 27, 2023, and the remainder by the year-end.

After Pratt & Whitney refused to comply, the SIAC on April 15 issued a second arbitral award, asking the US-based company to comply with its order.

Pratt & Whitney, however, has still refused to adhere to the order and had committed to supply Go First with only three serviceable engines by May-end, the airline said.

Go First had said that it was forced to cancel flights as it had to ground more than half its fleet of Airbus 320neo planes due to lack of availability of spares and spare engines from Pratt and Whitney.

Go First's refund dues to passengers have risen to around Rs 450-500 crore as the airline has cancelled flights till May 15 and the DGCA on May 8 ordered the airline to stop accepting bookings.

Last week, the Travel Agents Federation of India (TAFI) urged that the ultra-low-cost carrier directly credit the ticket refund amount to agents' bank accounts as many passengers are seeking refunds, adding that Go First could do so out of the agents' funds deposited in a credit shell with the airline.

A credit shell account is a credit note created against a cancelled PNR to be used for a future booking, for the same passenger/s.

The loss-making budget carrier was burning around Rs 200 crore of cash every month since November. No longer able to afford it, it had to resort to filing for insolvency before the NCLT, Kaushik Khona the airline's Chief Executive Officer had said last week.

Khona said that Go First needs at least 20 aircraft to return to service and break even on daily operations.

“We have requested NCLT to expedite taking up the insolvency of Go First. We are hopeful that the NCLT will help resolve cash inflow issues faced by Go First due to noncompliance by P&W,” Khona said.

Go First would be able to return to full-scale operations by September 2023 if Pratt and Whitney provides the airline with the engines, as stipulated in the SIAC order, Khona noted

The airline is seeking $ 1.1 billion in damages from the engine maker, whom it blames for the airline’s collapse.

“We have already crossed 20,000 aircraft on ground (AOG) days in the last three years, losing almost $55,000 each day. This means that my compensation alone, or my loss, which I can claim from Pratt & Whitney alone, will be around $1.1 billion,” Khona had said.

“To ensure this happens, we will tap into many more jurisdictions across the world, some of which are in the US, one in Germany, one in Japan and maybe one or two more in Europe and Singapore,” he added.

Apart from asking asked the bankrupt airline to stop selling any more tickets on May 8 with immediate effect until further orders, the DGCA also issued a notice to the airline asking why its licence should not be cancelled in view of its failure to operate flights.

The aviation regulator has given Go First till May 24 to respond after which a decision will be taken on the airline’s Air Operator Certificate.

The DGCA in its notice to Go First asked the airline why its AOC should not be revoked over “failure to continue ops in a safe, efficient & reliable manner”.

What's the refund process for Go First’s cancelled flights?

The airline said that customers, who had booked the flights for the mentioned dates will be fully compensated.

“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 announced on its website.

In addition, the airline has provided a detailed FAQ with information on how customers can claim refunds for cancelled flights.

Customers, who booked directly through the airline’s website will get a refund processed through their source account.

“The refunds will be processed to the respective modes of payment. We shall keep you updated on the proceedings. Thank you for your understanding,” the airline said.

Customers, who booked through online travel aggregators will also get a refund in the source account, according to the airline. However, if a refund is not issued, customers can also get in touch with the online travel aggregator for more information.