Cash-strapped airline Go First has cancelled all flights till May 9 after filing for bankruptcy a few days ago. It has cited “operational reasons” behind its decision.
By India Today Business DeskCash-strapped airline Go First, which had temporarily suspended operations on May 3, 4 and 5, has now said all its flights will be cancelled till May 9.
The Wadia Group-owned airline, which recently filed for bankruptcy, cited “operational reasons” behind its fresh decision to cancel flights for a longer period.
This casts a bigger shadow on Go First’s future, even as its CEO Kaushik Khona said the plan is to get the airline up and running again.
“We regret to inform that due to operational reasons, Go First flights scheduled till 9th May 2023 have been cancelled,” read the official statement.
The airline has also stopped the sale of tickets till May 15.
Meanwhile, the Directorate General of Civil Aviation (DGCA) has asked the airline to refund passengers who have booked tickets on canceled flights.
“DGCA has examined the response of Go First and has issued an order under the prevailing regulations directing them to process the refunds to passengers as per the timelines specifically stipulated in the relevant regulation,” it said.
The development comes on a day when Go First’s voluntary insolvency plea is being heard by the Delhi bench of the National Company Law Tribunal (NCLT).
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In its insolvency petition, Go First has blamed US aerospace manufacturer Pratt and Whitney for its financial troubles. It said non-supply of engines by P&W has led to the grounding of more than half of its fleet, forcing it to file for bankruptcy.
Go First’s bankruptcy filing suggests that it has total liabilities worth Rs 11,463 crore, with over Rs 6,000 crore owed to financial creditors.
Also Read | Go First BankruptcyHere’s what we know about refunds for those who booked tickets
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