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Go First Flight Cancellation Extended Till June 19, Refunds Initiated

admin — Fri, 16 Jun 2023 04:45:12 +0000

Crisis-hit airline Go First on Thursday announced that its scheduled flight operations will remain cancelled till June 19 due to operational reasons. Earlier, it was supposed to be till June 16.

“We regret to inform you that Go First flights scheduled till 19th June 2023 have been cancelled due to operational reasons. We apologise for the inconvenience caused by the flight cancellations,” Go First said in a tweet.

“We acknowledge the flight cancellations might have disrupted your travel plans, and we are committed to providing all the assistance we can,” they said in a letter.

The letter further said that the company has filed an application for immediate resolution and revival of operations. “As you are aware, the company has filed an application for immediate resolution and revival of operations. We will be able to resume bookings shortly,” it added.

On June 13, Go First announced that its scheduled flight operations will remain cancelled until June 16. The airline operator had filed for voluntary insolvency in early May, and since then, its operations have stalled.

Civil aviation regulator DGCA had advised the airline to submit a comprehensive restructuring or revival plan within 30 days. The regulator shall review the revival plan once submitted by Go First for further appropriate action in the matter.

Source: ANI

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Go First Airline Cancels All Flight Operations Till June 12, Assures Full Refund

admin — Sat, 10 Jun 2023 06:34:12 +0000

Indian budget airline Go First has issued a fresh announcement for the cancellation of all flight services till June 14. The new announcement comes within two days of the announcement to cancel flights till June 12. The airline, currently undergoing Corporate Insolvency Resolution Process, cited “operational reasons” for the suspension of operations.

In the announcement, Go First airline said, “Due to operational reasons, Go First flights until 14th June 2023 are cancelled. We apologise for the inconvenience caused and request customers to visit the website for more information. For any queries or concerns, please feel free to contact us.” It added that a full refund will be issued for the affected customers via the original mode of payment.

Go First has been attempting to restore flight operations recently and has promised customers that they would soon be accepting reservations. DGCA approval has reportedly been requested by the carrier in order to resume operations with 22 aircraft and 152 daily flights. The regulator will assess the resurrection plan after Go First submits it before taking any additional relevant action.

Since May 3, Go First has been non-operational. On May 10, the NCLT granted Go First’s request to begin voluntary insolvency resolution proceedings, and Abhilash Lal of Alvarez and Marsal was chosen as the airline’s IRP.

The changes occur less than a day after the insolvency tribunal NCLT served a notice on the crisis-hit airline’s interim resolution professional in response to a complaint made by supply chain firm Delhivery. They claim that the carrier’s bankruptcy process is a fraud. It said that despite being aware that Delhivery was requesting voluntary insolvency before NCLT, the airline nonetheless accepted payments from Delhivery totaling 57 lakh rupees on May 2, the day it submitted its plea.

Source: Bureau

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Go First Insolvency’s Impact On Aviation Industry: Uncertainty Over 7000 Jobs, Rising Airfare

admin — Sat, 03 Jun 2023 11:09:37 +0000

From a surge in airfares to rattled aircraft lessors to thousands of employees staring at uncertainty, it has been a month of continued turbulence since cash-strapped Go First suspended flights from May 3. As the government and other stakeholders hope that Go First restarts operations at the earliest, plans are being worked out for the budget airline’s revival. A section of Go First staff are optimistic about restarting of operations, another section are pessimistic about the airline’s future course considering what had happened to erstwhile Kingfisher Airlines and Jet Airways, according to employees who spoke to PTI.

Earlier this week, senior executives of Go First discussed the revival plans with senior officials of the Directorate General of Civil Aviation (DGCA). Apart from the uncertainty staring at more than 7,000 Go First staff, a significant fallout is the spike in air ticket prices on certain routes that used to be serviced by the airline, which was operating around 170-180 flights daily.

The crisis at Go First, having its roots in non-availability of Pratt & Whitney engines resulting in grounding of more than half of its operational A320 neo fleet, reached a flash point as the promoters of the carrier decided to suspend flights and sought voluntary insolvency resolution proceedings on May 2. The airline has not flown since May 3 and its petition for the insolvency proceedings was admitted by the National Company Law Tribunal (NCLT) on May 10.

Also, many lessors who have leased planes to the no-frills carrier have challenged the insolvency proceedings as they seek to exercise their rights to take back the aircraft despite the moratorium on the carrier’s financial obligations and transfer of assets.

Travel portal Cleartrip’s Vice President – Air Category – Gaurav Patwari said the significant capacity reduction due to Go First being non-operational has contributed to the spike in airfares.

“There is a sharp spike in fares especially for travel within D15 which can be attributed to the ongoing Go First issue. The fares within D15 travel have increased by 22 per cent and at the aggregate level up by more than 20 per cent over April for domestic travel,” he said. Generally, D15 refers to booking 15 days before travel.

“The spot fares in May have risen significantly versus April primarily due to peak season demand and a reduction in capacity due to the grounding of Go First, thereby creating an imbalance in demand and supply. The fares in D0 to 1 window are up by 40 per cent. We expect the current scenario to continue till mid of June,” he said.

Amid a spike in airfares on certain routes, the civil aviation ministry is doing an analysis of the routes that have been affected by the suspension of flights by Go First. On Thursday, Civil Aviation Minister Jyotiraditya Scindia said there is an unusual situation due to the Go First crisis and an excess demand on routes that the airline had been operating.

In a reflection of the imbalance between demand and supply, airfares on certain domestic routes are much higher than flights to destinations like Maldives and Dubai.

“Fares for Leh and Dehradun are currently 30 per cent higher compared to the fares for destinations like Maldives and Dubai. Average fares for Maldives and Dubai are Rs 11,000 whereas for Leh/Dehradun have gone up to Rs 14,200,” Patwari said.

Meanwhile, with many pilots at the now grounded Go First looking for other opportunities, the airline, in May, offered its captains Rs 1 lakh per month as “retention allowance”, in addition to their salary. First officers will get a retention allowance of Rs 50,000.

On May 30, Go First announced extending the cancellation of flights till June 4 due to operational reasons. Initially, the flights were suspended for three days till May 5 and subsequently, the suspension has been extended multiple times.

According to Patwari, the domestic demand has been robust this summer with daily flown passenger consistently hitting above 4.20 lakh. Consumer sentiment is strong and leisure & VFR (Visiting Friends and Relatives) travel are at an all-time high. Go First had been flying for more than 17 years.

Source: PTI

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Go First Crisis: Aviation Ministry Analysing Airline’s Impact On Rising Airfare

admin — Fri, 02 Jun 2023 11:48:58 +0000

Amid a surge in airfares on certain routes, the civil aviation ministry is doing an analysis of routes that have been affected by the suspension of flights by Go First. Civil Aviation Minister Jyotiraditya Scindia on Thursday said there is an unusual situation due to the Go First crisis and there has been an excess demand on the routes the airline had been operating. Go First, which is undergoing an insolvency resolution process, has not been flying since May 3. “We have given additional routes to other airlines but it is a piquant situation… I doubt any other sector has seen the vicissitudes that civil aviation has seen in the last three years,” he said while speaking at a conclave.

“… I have put together a group in the last couple of days and we are doing an analysis of a lot of those routes… That have been affected by this unusual event (Go First crisis). One is Srinagar, Pune, slightly Ahmedabad, we are doing a full analysis on that… We will speak to airlines to make sure fares are within a certain level… It is an issue created by an unforeseen demand-supply imbalance,” he said in response to a query related to high airfares on certain routes.

He also said that civil aviation is a deregulated sector. On lessors seeking to take back planes leased to Go First and legal proceedings in this regard, Scindia said, “We are doing the work from the regulatory side in terms of putting together the international framework to make sure that lessors are also well protected”.

While speaking about the growth potential of the country’s civil aviation sector, the minister also said that during the festive season, daily domestic air passenger traffic could touch 5 lakh. On whether he is in the race for the chief minister post in Madhya Pradesh, which will be going for polls later this year, Scindia said his race is not for a chair, post or position.

“I am ambitious for my people, development, progress… My pursuit is not politics,” he emphasised.

Source: PTI

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