Go First Seeks Permission to Refund Passengers for Cancelled Flights

Go First, the Wadia group-owned airline currently undergoing insolvency proceedings, has filed an application with the National Company Law Tribunal (NCLT) seeking approval to refund passengers who had their tickets cancelled when the airline ceased operations on May 3.

The application, presented by the airline’s resolution professional, Shailendra Ajmera, is scheduled to be heard by the NCLT on July 31.

This move is seen as a significant step towards resuming operations after the NCLT’s decision not to restrain the debt-laden airline from using leased aircraft. Go First currently possesses a fleet of 56 aircraft.

Advisory to Ticket Holders for Refund Claims

On July 3, the NCLT issued an advisory, urging ticket holders to submit their refund claims with the resolution professional for cancelled tickets.

To claim your refund, simply access the “Ease My Claims” portal and provide the necessary details as instructed. The airline will review your request and process the refund accordingly.

By utilizing the “Ease My Claims” portal, Go First aims to streamline the refund process and ensure a hassle-free experience for affected passengers seeking reimbursement for their cancelled flights.

DGCA’s Conditional Acceptance of Go First’s Resumption Plan

The Directorate General of Civil Aviation (DGCA) accepted Go First’s plan to resume services on July 21, subject to specific conditions. Among the requirements, the airline must demonstrate adequate funds and obtain the regulator’s approval for its flight schedule.

NCLT Boosts Go First by Rejecting Lessors’ Plea

In a favourable development for the low-cost carrier, the NCLT, on July 26, rejected a plea by seven lessors who had collectively leased 34 planes, seeking to restrain Go First from utilizing the leased aircraft.

The tribunal emphasized that the aircraft and engines were essential for the airline to function as a “going concern.”

Bankruptcy Protection and Allegations Against Pratt & Whitney

Go First filed for bankruptcy protection in May, citing engine maker Pratt & Whitney as responsible for the grounding of half its fleet and the ensuing financial troubles. However, the claim has been denied by the company.

The airline is burdened with a debt of Rs 8000 crore owed to a consortium of banks, including the State Bank of India, Punjab National Bank, IDBI, Canara Bank, and ICICI Bank.

Initiation of Insolvency Resolution Process

On May 10, the NCLT accepted Go First’s plea to initiate the insolvency resolution process. As a result, the tribunal appointed an insolvency resolution professional, suspended the board, and imposed a moratorium on the airline’s financial obligations.

The outcome of the upcoming hearing on July 31 will be crucial in determining the airline’s future course and its efforts to compensate affected passengers during this challenging phase.

(Source and Inputs From Moneycontrol)