Go First to Resume Flight Services by May 24th with Smaller Operation.

Go First, previously known as GoAir, has announced plans to resume its flight services by May 24th, albeit with a smaller operation. This comes after the airline cancelled all flights until May 19th, citing operational reasons.

A Truncated Schedule

According to sources familiar with the matter, Go First has 51 and 37 departure slots at the main airports of Delhi and Mumbai, respectively. However, the airline will operate with a truncated schedule due to the ongoing financial crisis caused by “faulty” Pratt & Whitney engines that have grounded about half its 54 Airbus A320neos.

Go First had earlier announced that it had cancelled all its flights until May 19th. Prior to that, the cancellations were till May 12th. The airline has assured its passengers that full refunds will be issued to the original mode of payment.

The cancellations have caused inconvenience to many passengers, and Go First has assured them that full refunds will be issued to the original mode of payment.

Moratorium from Recovery by Lessors and Lenders

In a recent judgment, the National Company Law Tribunal (NCLT) granted Go First protection under a moratorium from recovery by lessors and lenders. The NCLT also ordered that the company be kept as a going concern and that no employee be retrenched.

Go First CEO Kaushik Khona called it a historic ruling, stating that it prevents a viable airline from becoming unviable and that the purpose of the Insolvency and Bankruptcy Code (IBC) has always been a revival.

Seeking Bankruptcy Protection

This marks the first time an Indian airline has voluntarily sought bankruptcy protection to renegotiate contracts and debt. Go First has blamed its financial crisis on “faulty” Pratt & Whitney engines that have grounded about half its 54 Airbus A320neos. The US engine maker has denied the claims as being without evidence.

However, this move could complicate repossession efforts by lessors, who recently filed requests with India’s aviation regulator to return about 40 Go First planes after missing rental payments.

The Bottom Line

As Go First faces these challenges, how it will emerge from this crisis remains to be seen. The plan to restart flight services on May 24th with a smaller operation is a positive step, but the airline will need to address its financial troubles and repair its relationship with lessors to secure its long-term viability.

FAQs

Why did Go First cancel all its flights until May 19th?

Go First cancelled all its flights until May 19th due to its financial troubles caused by “faulty” engines and missed rental payments.

How many departure slots does Go First have at the main airports of Delhi and Mumbai?

Go First has 51 and 37 departure slots at the main airports of Delhi and Mumbai, respectively.

What is the cause of Go First’s financial crisis?

Go First has blamed its financial crisis on “faulty” Pratt & Whitney engines that have grounded about half its 54 Airbus A320neos.

What is the National Company Law Tribunal’s ruling on Go First?

The National Company Law Tribunal granted Go First protection under a moratorium from recovery by lessors and lenders, keeping the company a going concern and ensuring that no employee is retrenched.

How will Go First’s move to seek bankruptcy protection impact its relationship with lessors?

Go First’s move to seek bankruptcy protection could complicate repossession efforts by lessors who have filed requests for the return of about 40 Go First planes after missing rental payments.

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