Go First Extends Flight Cancellations until May 19
Go First has recently made the decision to suspend all its flights until May 19 citing ‘operational reasons’. Previously, the airline had already disclosed cancellations until May 12. The airline sincerely apologizes for any inconvenience caused by these unexpected cancellations, understanding the impact it may have on travelers.
In a significant development, India’s bankruptcy court has granted Go First bankruptcy protection, marking a turning point for the low-cost airline. The board of directors appointed Abhilash Lal as the interim resolution professional responsible for overseeing the management of Go First during this period.
The statement assures that the company will issue refunds promptly to the original mode of payment. The airline is dedicated to providing all available assistance, as stated in the announcement.
Due to pending dues of oil marketing companies, the Wadia-owned airline had previously announced the suspension of flights for May 3, 4, and 5.
The airline has faced financial difficulties as a result of grounding over half of its fleet due to recurring issues and the non-supply of engines from Pratt & Whitney engines.
Prior to its case going to NCLT, the airline was actively seeking a strategic investor.
During its operational period, the airline followed a cash-and-carry mode, meaning it had to make daily payments for the desired number of flights.
Industry officials have stated that as of March 31, Go First had 30 aircraft grounded, including nine for which lease payments are due. According to the airline’s website, Go First currently possesses a total fleet of 61 aircraft, consisting of 56 A320neos and five A320ceos.
Revenue Loss
The loss of passenger revenue occurs at a time when airfares are high and traffic is increasing significantly post-pandemic. The airline aims to operate 1,538 flights per week in the current summer schedule, which is 40 flights fewer than last year. The summer season commenced on March 26 and will continue until October 28.
Go First’s market share has experienced a decline since July 2022, when the airline faced the necessity to ground its aircraft. In February, its market share decreased to 8 percent, accommodating 963,000 passengers, compared to its peak of 11.1 percent in May 2022, when it successfully transported 1.27 million passengers.
The decrease in passenger numbers has had a significant impact on Go First’s financial performance. As per regulatory filings, the airline reported a net loss of $218 million in FY22, which is twice the amount of the previous year’s loss of $105 million.
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