Grounded airline Go First received some positive developments over the past few days about its plans to get airborne again, convincing flyers to fly with it again and releasing funds owed to the customers are among the biggest challenges for the beleaguered company.
The crisis-hit Wadia group promoted airline, which is aiming to start operations under the protection of the courts, owes Rs 800-1000 crore to customers who had confirmed bookings on flights which it cancelled from early May onwards.
Travel agencies who have worked with Go First for several years appear reluctant to do business with the airline again. They said that though additional seats in a capacity-constrained market would be a welcome step, flyers would be apprehensive of flying with them again.
Madhavan Menon, executive chairman, Thomas Cook India, said, “Go First will need to convincingly win back the trust of passengers and travel companies like us before making plans for a successful revival. My customers’ interest is primary. Till Go Air can convince us that they will operate in a sustained manner, I don’t see demand for their seats coming back.”
On July 21, the Directorate General of Civil Aviation (DGCA) gave its nod to Go First to resume flight operations, subject to fulfilment of 10 conditions. Earlier this month, the Singapore Arbitration Tribunal directed Pratt & Whitney (P&W) to provide five aircraft engines to Go First every month starting August 1.
“They have extended the period for flight cancellation six times. Unless I have confidence, I will not give it to my customer. At the end of the day my reputation lies with my customer, not Go Air’s,” Menon added.
Besides leading to a surge in airfares amid an on-going peak travel season, the sudden grounding of all flights from May 3 of more than 30 aircraft of Go First led to large scale confusion among airline’s customers who were left high and dry by it and the travel agents.
Ajay Prakash, president, Travel Agents Federation of India, said, “The airline owes Rs 800-1000 crore in refund to the flyers. While the lessors, fuel companies, airports and banks are treated like secured creditors, the monies that we have advanced to the airline as agents or passengers are unsecured.”
“When passengers wrote to them asking for refunds, they said that the refunds have been given to the agents. Giving refunds to an agent in a hypothetical credit shell is the equivalent of me faxing a cheque for the money I owe. This simply does not serve any purpose. The challenge will be to fly with Go First again considering that their credibility is at an all-time low,” Prakash added.
With more than 2500 members across the country, Travel Agents Association of India (TAAI) is one of the largest lobby bodies of airline ticketing agencies in the country. The body is also fighting for refunds with Go First.
Jay Bhatia, vice president, Travel Agents Association of India (TAAI) said, “We have no indication about the current status of the airline. We have asked for a meeting with them but there has been no revert regarding them restarting operations or refunding our dues. Go First has to convince us that it is going to stay afloat.”
A mail sent to Go First for comments for the story remained answered at the time of going to press.