TAAI Considers NCLT Action if Go First’s Debt Remains Unresolved

In a recent development, the Travel Agents Association of India (TAAI) has expressed its concerns over the mounting dues owed by Go First, a prominent airline operating in the country. TAAI, which boasts a membership of over 2,500 travel agents, has warned that it may resort to legal action by approaching the National Company Law Tribunal (NCLT) if the airline fails to propose a viable solution to clear its estimated debt of approximately Rs 900 crore.

The NCLT, responding to Go First’s plea, has already initiated voluntary insolvency resolution proceedings, suspending the airline’s board and appointing an interim resolution professional to oversee its operations during this period. However, TAAI remains steadfast in its demand for a satisfactory resolution that addresses the mounting financial burden faced by its members.

Jyoti Mayal, President of TAAI, stated in an interview with PTI that the association is eagerly awaiting announcements from Go First regarding their plans to settle the outstanding dues. Should the airline fail to present a viable solution, TAAI will seriously consider escalating the matter by approaching the NCLT for further action.

TAAI Letter

In a letter addressed to Civil Aviation Minister Jyotiraditya Scindia earlier this week, TAAI highlighted the urgency of protecting the interests of travel agents and called for a reassessment of existing refund policies. Low-cost airlines typically receive advances from travel agents, who then issue tickets using a credit shell created by the airline. However, Go First’s financial troubles have left approximately Rs 900 crore worth of trade held in limbo, causing significant strain on the travel agents involved.

TAAI emphasized the timing of the issue, citing the ongoing peak travel season and the fact that its members had booked Go First flights at an impressive 90-93% capacity for the holiday season. The association stressed the urgent need for a resolution to release the funds and mitigate the impact on its members’ businesses.

While Go First has taken the step of initiating insolvency resolution proceedings, TAAI’s concern remains primarily focused on ensuring that travel agents receive their dues in a timely manner. The association recognizes the importance of a healthy and sustainable aviation ecosystem but also advocates for the protection of its members’ financial interests.

As the situation unfolds, it remains to be seen whether Go First will propose a satisfactory resolution that meets the expectations of TAAI and its members. The fate of the airline and the resolution of the outstanding debt will ultimately depend on the decisions made by the NCLT and the willingness of Go First to address the concerns raised by the travel agents association.

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