Go First crisis: All flights cancelled till May 19, NCLT admits insolvency resolution process
Cash-strapped airline Go First on Wednesday announced that all of its flights are cancelled until May 19. Meanwhile, NCLT accepted Go First’s voluntary petition to begin insolvency resolution proceedings against the airline.
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FollowCash-strapped airline Go First announced on Wednesday that all of its flights are cancelled until May 19 according to "operational reasons". The announcement comes after the National Company Law Tribunal (NCLT) approved its voluntary petition to start insolvency resolution procedures.
The airline said, "Due to operational reasons, Go First flights until May 19th 2023 are cancelled." It apologised for the trouble it had created and asked that people go to their website for additional details. The message stated, "A full refund will be issued to the original mode of payment shortly."
Meanwhile, on Wednesday, the National Company Law Tribunal (NCLT) accepted Go First's voluntary request to begin the airline's insolvency resolution procedure. Abhliash Lal was also named interim resolution professional (IRP) to manage the indebted corporation by a two-member bench that included President Justice Ramalingam Sudhakar and L N Gupta.
The firm has been placed under a moratorium of protection, and the suspended board of directors has been instructed to help the IRP manage the business throughout insolvency proceedings. The NCLT further ordered the corporation to donate Rs 5 crore to IRP in order to cover immediate costs associated with the insolvency procedure. Additionally, NCLT mandated that the business remain open for business and that no employees be let off.
Amidst a financial crisis brought on by the grounding of more than half of its fleet owing to the unavailability of Pratt & Whitney engines, Go First, which has been operating for more than 17 years, suspended flights as of May 3. The airline, which has liabilities of Rs 11,463 crore, has requested voluntary bankruptcy resolution procedures as well as a temporary suspension of its financial commitments.
Go First had already suspended the sale of tickets till May 15. As many as 28 planes or more than half of the airline's fleet are grounded due to the non-supply of engines by Pratt & Whitney (P&W).
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