Go First Insolvency Not Ideal for Aviation Sector; Government Ready to Assist Airlines, Says Jyotiraditya Scindia
Go First’s insolvency proceedings have raised concerns in India’s civil aviation sector, according to Jyotiraditya Scindia, the Civil Aviation Minister. In response to the crisis, Scindia expressed his belief that the ministry should support the airlines and work towards the early resumption of flights.
Jyotiraditya Scindia
Scindia acknowledged that while every company must manage its own issues, Go First’s insolvency is not a favorable development for the civil aviation sector. The airline has been facing financial difficulties, leading to the suspension of its operations since May 3, with the suspension extended until May 26.
The National Company Law Tribunal (NCLT) accepted Go First’s plea for voluntary insolvency resolution proceedings on May 10. However, some aircraft lessors have challenged the NCLT’s decision by approaching the National Company Law Appellate Tribunal (NCLAT). The NCLAT is scheduled to deliver its judgment on the lessors’ petitions on May 22.
Addressing the concerns regarding Pratt & Whitney engine issues that have resulted in the grounding of several planes, Scindia stated that the ministry has emphasized the need for the manufacturer to ensure the prompt restoration of the grounded aircraft.
The dispute between Go First Airlines and Pratt and Whitney (P&W) may escalate into a legal battle, as the US jet manufacturer has responded to the budget airline’s claim that P&W is responsible for its financial woes and subsequent bankruptcy. A spokesperson from Pratt & Whitney stated, “Go First’s allegations that Pratt & Whitney is to blame for its financial situation lack credibility.
In conclusion, the Indian government, through Civil Aviation Minister Jyotiraditya Scindia, expressed its readiness to assist airlines during challenging times and highlighted the ministry’s determination to facilitate the resumption of flights. The insolvency proceedings of Go First and the ongoing issues with Pratt & Whitney engines remain significant challenges for the aviation sector, with stakeholders eagerly awaiting further developments in these matters.
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