Go First, which is going through insolvency proceedings, has sought the National Company Law Tribunal's (NCLT's) permission to refund passengers whose tickets were cancelled after the cash-strapped airline stopped flying on May 3.
The application, filed by the airline's resolution professional Shailendra Ajmera will be heard on July 31. The move is being seen as another step towards the resumption of operations after the NCLT refused to stop the debt-laden airline from using leased aircraft. The airline has a 56-aircraft fleet.
The NCLT in an advisory on July 3 asked the ticket holders to make their claims with the resolution professional for refunds of cancelled tickets.
The Wadia group-owned airline’s refund move comes after the Directorate General of Civil Aviation (DGCA) on July 21 accepted its plan to resume service but with conditions attached. The airline will have to prove it has the required funds and the regulator’s nod for the flight schedule.
On July 26, NCLT turned down a plea by seven of the lessors, who have together leased 34 planes, to restrain the airline from using the leased aircraft, a decision seen as a boost for the low-fare carrier.
The tribunal held that aircraft and engines were essential to keep the company running as a “going concern”.
Go First filed for bankruptcy protection in May, blaming engine maker Pratt & Whitney for the grounding of half of its fleet and economic woes, a claim denied by the company.
The airline owes Rs 8000 crore to a consortium of banks, which includes State Bank of India, Punjab National Bank , IDBI, Canara Bank and ICICI Bank.
On May 10, NCLT accepted its plea to initiate the insolvency resolution process. The tribunal appointed an insolvency resolution professional, suspended the board and imposed a moratorium on the airline's financial obligations.
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