Low-cost airline Go First filed for insolvency resolution on Tuesday due to grounding of its aircrafts and severe cash crunch situation. The airline said that all its flights will be suspended for at least three days starting May 3.
Go First told BT TV on Tuesday said that the airline has filed an application for voluntary insolvency resolution proceedings before NCLT. The airline has been facing a financial crunch due to non-supply of engines by Pratt & Whitney that forced the grounding of 28 of its planes.
“We regret to inform you that due to operational reasons, Go First flights scheduled for May 3-5, 2023 have been cancelled. We apologise for the inconvenience caused by the flight cancellations,” Go First said in a statement. The flight cancellation has caused severe panic among passengers.
The passengers of Go First airline, who booked flights on May 3, 4, and 5 will receive a full refund, Go First assured. The airline has provided a detailed FAQ showing how customers can get refunds for cancelled flights.
“A full refund will be issued to the original mode of payment shortly. We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can,” the Go First statement read.
For flight tickets booked via Go First website, the refunds will be processed to the respective modes of payment. "We shall keep you updated on the proceedings. Thank you for your understanding,” Go First said. The refund will be processed to the source account of passengers.
Go First said that passengers who purchased tickets via online travel agencies will also receive the reimbursement in their original account. Customers can, however, contact the online travel aggregator for more information if a refund is not provided.
Go First has clarified that it won’t be able to reschedule/transfer customer’s tickets to any other airlines. “Dear Go First Flyer, we sincerely regret the inconvenience caused to you due to the event of flight cancellation, on account of unavoidable operational issues. We regret that we cannot reschedule/transfer your ticket to any other airline,” Go First said.
Go First has also stated that the flight tickets won’t be rescheduled to any other dates due to unavailability. The airline also added that it won’t be able to make any changes or special requests for their existing bookings.
Go First blamed Pratt & Whitney engines for the grounding of about half its fleet. In its insolvency filing Go First said that the percentage of grounded aircraft due to faulty engines has grown from 7% in December 2019 to 31% in December 2020 to 50% in December 2022.
Go First commanded a market share of 8.9% in CY22 and sudden disruption in operations is likely to benefit other players and raise airfares due to supply constraints, according to Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd.