For some time now, Go First has been experiencing financial difficulties. Its employees, including crew members, have not been paid in three months. Many of them have considered quitting. According to media reports, 500 of its 600 pilots have already resigned and are serving their notice period.
Due to technical issues with Pratt & Whitney engines, the airline grounded flights in early May and voluntarily requested that the corporate insolvency resolution process, or CIRP, begin.
Approximately 1,200 employees, including cabin crew and maintenance engineers, have left the airline since July.
Go First’s resolution professional submitted a plan in June to resume operations with 26 aircraft, 160 flights per day, and four aircraft in reserve. Go revealed plans to increase its pilots’ salaries by Rs 1 lakh per month about two months ago in an attempt to retain them and resume operations.
Employees are concerned not only about the nonpayment of salaries, but also about the lack of clarity regarding the financial assistance that was to be provided by banks. There had been talk of raising Rs 450 crores to restart operations. However, the airline has now pushed back the deadline for submitting expressions of interest from August 8 to September 8, 2023.
