The airline is seeking $ 1.1 billion in damages from the engine maker, whom it blames for the airline’s collapse. Go First would be able to return to full-scale operations by September 2023 if Pratt and Whitney provides the airline with the engines, as stipulated in the SIAC order, Khona noted We are hopeful that the NCLT will help resolve cash inflow issues faced by Go First due to noncompliance by P&W,” Khona said. “We have requested NCLT to expedite taking up the insolvency of Go First. Khona said that Go First needs at least 20 aircraft to return to service and break even on daily operations. No longer able to afford it, it had to resort to filing for insolvency before the NCLT, Kaushik Khona the airline's Chief Executive Officer had said last week. The loss-making budget carrier was burning around Rs 200 crore of cash every month since November. Last week, the Travel Agents Federation of India (TAFI) urged that the ultra-low-cost carrier directly credit the ticket refund amount to agents' bank accounts as many passengers are seeking refunds, adding that Go First could do so out of the agents' funds deposited in a credit shell with the airline.Ī credit shell account is a credit note created against a cancelled PNR to be used for a future booking, for the same passenger/s. Go First's refund dues to passengers have risen to around Rs 450-500 crore as the airline has cancelled flights till May 15 and the DGCA on May 8 ordered the airline to stop accepting bookings. Go First had said that it was forced to cancel flights as it had to ground more than half its fleet of Airbus 320neo planes due to lack of availability of spares and spare engines from Pratt and Whitney. Pratt & Whitney, however, has still refused to adhere to the order and had committed to supply Go First with only three serviceable engines by May-end, the airline said. The SIAC had, on March 30, ordered Pratt & Whitney to provide Go First with at least 10 serviceable engines by April 27, 2023, and the remainder by the year-end.Īfter Pratt & Whitney refused to comply, the SIAC on April 15 issued a second arbitral award, asking the US-based company to comply with its order. He added that if the NCLT promptly hears Go First’s plea and if the Delaware federal court upholds the order by the Singapore International Arbitration Commission (SIAC) in its dispute with engine supplier Pratt and Whitney, the airline will be in a position to restart operations soon and the airline may be able to offer its customers alternative flights as well. However, the airline is hoping that some passengers believe in the airline and opt for future tickets instead of direct refunds,” this person said. “Paying the salaries of its employees and providing refunds to passengers is of utmost importance to Go First and its promoters. “Passengers, who have booked tickets through travel agents and online portals are likely to see their tickets refunded sooner, but passengers who booked tickets directly on the airline’s website or mobile application may have to wait longer,” the second person said.Ī third person in the know said that the airline is hoping that some customers may also be interested in free tickets as compensation once the airline restarts operations. He added that while providing refunds to customers is of the highest priority for Go First, the processing procedure is likely to take a couple of weeks.Īnother source close to the airline said that Go First and its promoters may soon raise around Rs 200 crore to finance the refunds as well as to pay all its employees. “Go First is likely to ask the NCLT for a moratorium to raise money in order to provide refunds of tickets for flights cancelled after May 2,” a source involved with the airline said. People who had booked tickets on Go First flights that were cancelled seem to be staring at a longer wait for refunds as the airline is expected to request some time from the National Company Law Tribunal (NCLT) and Directorate General of Civil Aviation (DGCA) to raise the necessary funds, multiple sources aware of the issue told Moneycontrol.
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