Go First airline, which has been grounded since May 3rd, has announced that it will keep flight operations suspended till July 25th due to operational reasons. The announcement comes after the DGCA on Friday allowed the bankrupt airline to resume scheduled flight operations.
On Twitter, the airline issued a statement expressing deep regret, stating, “We are saddened to announce that all Go First flights scheduled until 25th July 2023 have been canceled due to operational reasons. We sincerely apologize for any inconvenience caused by these flight cancellations.” Furthermore, the tweet disclosed that the company had taken action by filing an application seeking immediate resolution and revival of operations.
Go First Saga: Story so far
In the month of early May this year, Go First (previously known as GoAir) found itself in dire financial straits and decided to initiate insolvency proceedings. The company had been grappling with persistent engine issues, resulting in a significant number of its aircraft being grounded.
On May 2, Go First made the decision to cancel its flights and voluntarily filed for bankruptcy with the National Company Law Tribunal (NCLT). They cited delays from Pratt & Whitney, a US-based engine manufacturer, as the primary reason behind their inability to fulfill obligations, leading to the grounding of a portion of their fleet.
As a consequence, the NCLT imposed a moratorium on May 10 and appointed an Interim Resolution Professional to oversee the process. In June, Shailendra Ajmera was appointed as the Resolution Professional for Go First, a decision later approved by NCLT.
With nearly 4,200 employees, the airline reported Rs 4,183 crore as total revenue from operations in the financial year 2021-22, reported ANI. The grounding of their flights had a notable impact on airfares, especially on specific routes where the airline held a significant presence.
