The employees of Go First, who are facing financial pressure, have now faced the problem of salary. Recently, the company informed the employees about the delay in salary payments for May and June.
The company had disclosed that his salary would be credited only if the lenders agreed to provide additional interim funding. Now the latest update in this matter is that the lenders have agreed. The HR department of the company informed about this update in a town hall meeting with the pilots. The HR department also disclosed that the company was not generating revenue at this time, hence the delay in disbursement of salary for June was estimated.
May 1st salary will be credited
The company had informed the employees that the salary for the first May would be credited. Employees who have not received their salary for May will be sent it. Only after this, the salary of June will be sent to the employees’ account. This work will be done next month i.e. in the first two weeks of July. A media report claims that GoFirst’s resolution professional had requested for funds of Rs 400-600 crore and the lenders have agreed to provide Rs 425 crore.
What is the plan to start Go First flights
The problems related to the salary of the employees came because its flights are closed and it is unable to generate any revenue. Go First’s resolution professional Shailendra Ajmera presented the revised plan to the aviation regulator DGCA officials on Wednesday. The airline has proposed to resume flights with 22 aircraft which can be scaled up after getting DGCA’s nod.
Why did the problems start
According to GoFirst, the American company Pratt & Whitney did not supply the engine to it, due to which its problems started. This forced GoFirst to ground half of its fleet. On May 1, the company grounded these aircraft and on May 2, it filed a petition for voluntary insolvency with outstanding dues of Rs 11,000 crore. GoFirst has now canceled its flights till July 6.
