Flights Canceled: Airlines company Go First, which is facing economic crisis, has decided to cancel all its flights till May 12. The company has informed about this on Friday night.
Significantly, heavily debt-ridden GoFirst has recently applied for Voluntary Insolvency Proceedings with NCLT to declare itself bankrupt, but NCLT has reserved its decision in this matter. The company currently has a debt of Rs 6,521 crore.
Information given through tweet
Giving this information on its Twitter handle, GoFirst, a company providing cheap air services to passengers, said that due to operational problems, the company has canceled all its flights till May 12. The company of Wadia Group also gave information related to ticket refund. To the passengers
GoFirst said that the full amount of the affected passengers would be refunded soon. Earlier, the company had canceled all its flights till May 2 and 3, which was extended till May 9. Now this period has been extended till May 12.
Tickets will not be sold till May 15
On Thursday, aviation regulator DGCA had informed that the airline has banned the sale of all flights till May 15. Along with this, DGCA has ordered the company to return the money of all the passengers as soon as possible as per the rules. The National Company Law Tribunal (NCLT) will hear two bankruptcy petitions on Monday, May 8, regarding the decision related to declaring the company bankrupt. Declaring itself insolvent, the airline has sought an interim moratorium on repayment of all financial loans. After hearing the matter, the NCLT had reserved the verdict on Thursday.
Started in the year 2005, GoFirst Air is one of the leading airlines in providing affordable air services. The company has said in its bankruptcy application that at present it is able to operate flights only after payment in cash and carry mode. In such a situation, the company has to make daily payments. At present, the company has a total debt of Rs 6,527 crore.
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