Passengers at a ticketing workplace of Go First airways at Mumbai airport on May 3, 2023.
| Photo Credit: PTI
No-frills service Go First submitting for insolvency proceedings and cancelling flights is unhealthy for the airline business as the transfer will reduce capability and will push airfares in sure routes, Travel Agents Association of India (TAAI) stated on May 3.
Bogged down by an acute monetary crunch due to grounding of greater than half of its fleet amid P&W engine provide woes, Go First has cancelled flights for 3 days beginning May 3.
Besides, the Wadia group-owned airline has filed for voluntary insolvency decision proceedings underneath the Insolvency and Bankruptcy Code (IBC).
“It is bad for the (airlines) industry… It is such a fragile industry… we lost crores of rupees in Kingfisher Airlines, in Jet Airways and we have another one going into insolvency (proceedings),” TAAI President Jyoti Mayal informed PTI.
The developments at Go First, which has been flying for greater than 17 years, additionally come at a time when the home air visitors is on an upward trajectory.
Ms. Mayal stated that proper now there may be demand for air journey as it’s vacation time and “we do expect fares going up in sectors it (Go First) was flying. In the coming weeks, fares are likely to go up.”
Regarding booked tickets, she stated it’s the firm that has to present refunds and if it goes into insolvency, the principles are totally different.
“Those are the challenges we are going to be facing”.
TAAI has round 2,800 members. In the summer season schedule that’s on from March 26 to October 28, Go First is to function 1,538 flights per week.
