MUMBAI- Reportedly, according to media sources, Go First (G8) airlines have sought immediate funding of ₹100 crores from its lenders to address pressing financial obligations, including essential liabilities such as insurance.
However, the airline’s financially strained and unpaid workforce, grappling with uncertainties, approached the Mumbai headquarters in Kaledonia a week ago to seek clarifications.
Regrettably, the Resolution Professional (RP), Shailendra Ajmera, was not present at the location, reported Free Press Journal.
Go First Staff Seeks Answer
Ever since the airline initiated insolvency resolution proceedings at the National Company Law Tribunal, its employees have been caught in a state of ambiguity.
Despite having around 7,000 employees and indirectly contributing to almost 10,000 jobs, the low-cost carrier has been deferring payments, bonuses, and reimbursements, as highlighted by CNBCTV18.
While the company managed to disburse March salaries in mid-April, no updates regarding the April salary payments have emerged.
Additionally, Go First had mandated its employees to observe a six-month notice period. Still, with flight operations suspended, the cabin crew found themselves without work, as indicated by media reports.
Restart Flights with Conditions
The DGCA has granted approval to Go First’s proposed resumption plan, which was dated June 28. However, this acceptance is subject to the outcomes of writ petitions currently pending before the Delhi High Court and the National Company Law Tribunal (NCLT).
According to the DGCA’s notification, Go First is permitted to recommence flight operations provided it adheres to all the necessary regulatory requirements for holding an Air Operator Certificate. The airline must also ensure the airworthiness of all aircraft involved in its operations.
The company cannot deploy any aircraft for operations without conducting a satisfactory handling flight. Any changes in the company that may impact the submitted resumption plan must be promptly communicated to the DGCA.
The airline intends to restart flights as soon as possible, with 22 aircraft in its fleet.
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