While speaking to reporters, the Aviation Minister stated that although Go First’s financial problems pertain to the civil aviation sector, each company is responsible for managing its own issues.
Union Aviation Minister Jyotiraditya Scindia addressed the issue of cash-strapped Go First undergoing insolvency resolution proceedings, commenting that it is “certainly something that is not a great thing for civil aviation.”
Speaking to media, the Aviation Minister stated that although Go First’s financial problems pertain to the civil aviation sector, each company is responsible for managing its own issues. “As far as the Ministry is concerned, we are quite steadfast in our resolve in terms of helping airlines with whatever fundamental issues there are,” Scindia added.
It may be recalled that Go First has suspended flights until 26 May, on grounds of “operational reasons.” It hopes to resume operations as soon as 27 May, and to that extent, it has already started retraining pilots.
The low-cost carrier ceased operations on 3 May, after which it approached the National Company Law Tribunal (NCLT) for insolvency resolution proceedings, citing Pratt & Whitney’s engines as the reason for its inability to operate. The Directorate General of Civil Aviation (DGCA) issued an order to the airline to stop the sale of tickets until further orders.
The NCLT permitted the airline’s voluntary plea for insolvency resolution proceedings on 10th May. Abhilash Lal has been appointed by the Tribunal as the Interim Resolution Professional (IRP) to manage the carrier’s operations.
At the same time, three aircraft lessors have filed petitions seeking repossession of the aircraft that have been leased to Go First. The National Company Law Appellate Tribunal (NCLAT) will pass its decision on 22nd May on the petitions.
Lessors have approached the DGCA for the deregistration of 45 Go First planes so far this month.