Go First airline has been reeling with engine troubles for a very long time. (REUTERS)
The developments at Go First, which has been flying for greater than 17 years, additionally come at a time when the home air site visitors is on an upward trajectory.
No-frills service Go First submitting for insolvency proceedings and cancelling flights is unhealthy for the airline business because the transfer will scale back capability and will push airfares in sure routes, journey brokers’ grouping TAAI mentioned on Wednesday.
Bogged down by an acute monetary crunch attributable 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 below the Insolvency and Bankruptcy Code (IBC).
“It is unhealthy for the (airways) business… It is such a fragile business… we misplaced crores of rupees in Kingfisher Airlines, in Jet Airways and now we have one other one going into insolvency (proceedings),” Travel Agents Association of India (TAAI) President Jyoti Mayal told PTI.
The developments at Go First, which has been flying for greater than 17 years, additionally come at a time when the home air site visitors is on an upward trajectory.
Mayal said that right now there is demand for air travel as it is holiday 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 mentioned it’s the firm that has to supply refunds and if it goes into insolvency, the principles are totally different. “Those are the challenges we’re going to be going through”.
In a statement, TAAI expressed concern over the sudden cancellation of flights by Go First.
“The cancellations and refunds of tickets to its members and consumers have raised concerns at TAAI, who fear that travel agents will be adversely affected, presenting a significant financial blow as they struggle to revive post Covid,” it mentioned.
TAAI additionally mentioned it has been asking for measures to deal with airline defaults.   “The affiliation has been advocating for cover by way of insurance coverage on tickets or putting monies in an escrow account with the federal government as safety for all the ecosystem,” it said, adding that the government needs to bring policies to safeguard consumer’s and service provider’s money.
TAAI has around 2,800 members.
In the summer schedule that is on from March 26 to October 28, Go First is to operate 1,538 flights per week.
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(This story has not been edited by News18 workers and is printed from a syndicated information company feed)
