GoFirst Airline: Applying for bankruptcy resolution on behalf of GoFirst Airline and canceling flights is not good for the airline industry. Expressing the opinion, the Travel Agents Association of India (TAAI) said that this move by GoFirst Airline will reduce the capacity.
Not only this, air fares will increase on some air routes. GoFirst Airline has suspended its flights for three days from May 3 amid the Pratt & Whitney (P&W) engine supply crisis.
Apart from this, the airline has also applied for insolvency resolution. TAAI President Jyoti Mayal said, ‘This is a very bad situation for the airline industry. We have lost crores of rupees in Kingfisher Airlines. There has also been a loss in Jet Airways. Now another bankruptcy solution has come to the fore. He said that this development of GoFirst, which has been operating for more than 17 years, has come to the fore at a time when domestic air traffic is increasing.
Rent likely to increase
possibility of increasing fares in the areas where GoFirst is flying. Airfare will increase in the coming weeks. On ticket booking, he said that the company will have to refund the money for the canceled flights. But in the case of insolvency resolution, the rules are slightly different. He said that at this time we are facing some similar challenges.
Due to this problem,
GoFirst CEO Kaushik Khona told the employees that this crisis has arisen in front of the airline due to repeated problems in ‘Pratt & Whitney Engine’. He assured the employees that the airline is doing everything possible to deal with the situation. He said, the airline is worried about the future of the employees.
In a late-night e-mail sent to employees, CEO Khona said Pratt & Whitney (P&W) failed to supply the engine leading to a serious crisis. He said that P&W has been trying to assure the airline management for more than 12 months to provide spare engines and repair them. Despite this, now P&W is obstructing the talks. Khona said that the airline has taken steps for emergency mediation in Singapore in this matter.
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