Passengers upset at airports due to bankruptcy of Go First, shares of lending banks also fell heavily

Wadia Group-owned airline GoFirst is grappling with a severe cash crunch due to which its flights have been suspended. The company has said that it will temporarily suspend its flights from May 3 to 5. Earlier, the airline had announced suspension of flights for two days. The company is on the verge of bankruptcy and its financial condition can be understood from the fact that it has applied for insolvency resolution. Bank of Baroda, Central Bank and IDBI Banks are witnessing a fall in the stock markets due to the news of bankruptcy of GoFirst as these banks have given huge loans to GoFirst. It is being told that due to fall in the share prices of these banks in the stock markets, investors have lost Rs 7100 crore. While GoFirst has blamed engine manufacturer Pratt & Whitney for this situation, the company has rejected the allegations made by GoFirst and pointing to its payment history, GoFirst is in the dock. has been erected.

airport scene

Meanwhile, visuals coming out from the airports show that GoFirst counters are lying empty in several cities including Ahmedabad, Delhi after GoFirst Airlines stopped flights on 3rd, 4th and 5th May. Also, passengers are facing a lot of trouble due to cancellation of flights as no prior information about cancellation of flights was given to them. In such a situation, the passengers who reached the airport had to face trouble. Let us also tell you that the routes on which Go Air provides air services are also seeing a significant increase in airfares as Go Air passengers are looking to book tickets to travel from other airlines.

company side

As far as the company’s side is concerned in this whole episode, let us tell you that the airline’s chief Kaushik Khona has said that due to the airline not getting the supply of engines from Pratt & Whitney (P&W), more than half of its fleet i.e. 28 aircraft Had to stand up. Because of this, a cash crunch has arisen in front of the airline. He said, “Applying for insolvency resolution is an unfortunate decision but it was necessary to do so to protect the interests of the company.” Has applied for the insolvency resolution process. The airline has also informed the government about these developments. Along with this, she is going to submit a detailed report in this regard to the Directorate General of Civil Aviation (DGCA).

The company said in the notice that the airline’s flights would remain suspended on May 3, 4 and 5. After that the flight operations will resume. Let us tell you that the number of employees of GoFirst is more than 5,000. GoFirst also said that it would refund passengers for their tickets in full. The company said, “We regret that due to operational reasons, GoFirst flights will remain suspended on May 3, 4 and 5, 2023.” We apologize for the inconvenience caused to passengers due to the cancellation of flights… We will provide whatever assistance we can and are fully committed to the same.

Aviation Minister’s response

Meanwhile, Civil Aviation Minister Jyotiraditya Scindia has said that it is unfortunate that the financial condition of the airline has suffered a setback due to operational constraints related to engine supply. Referring to the airline’s voluntary application for insolvency resolution proceedings, Scindia said, “It would be better to wait for the judicial process.” was facing problems related to The government was helping the airline in every possible way. The matter has been taken up with the concerned parties. ”He said that it is unfortunate that the financial condition of the airline has suffered a setback due to operational constraints. Scindia also said that the Directorate General of Civil Aviation (DGCA) has issued a notice to the company for the sudden suspension of some flights. He said that it is the duty of the airline to make alternate travel arrangements for the passengers so that the inconvenience is minimized.