Go First has been facing financial difficulties for some time now. Its employees, including crew members have not been paid their salaries for three months. Many of them have been contemplating quitting. As per media reports, 500 out of its 600 pilots have already put in their papers and are serving their notice period.
Having faced technical issues due to problems with the engines supplied by Pratt & Whitney, the airline had grounded flights in early May, and had voluntarily sought the corporate insolvency resolution process or CIRP to begin.
Since July, about 1,200 employees have left the airline, including cabin crew and maintenance engineers.
In June, Go First’s resolution professional had submitted a plan to restart operations with 26 aircraft, 160 flights daily and four aircraft in reserve. About two months ago, Go had revealed plans to increase its pilots’ salaries by Rs 1 lakh per month, in an attempt to retain them and resume operations.
It is not just the non-payment of salaries that is bothering the employees, but the fact that there is no clarity regarding the financial support that was to come from banks. There had been talks of Rs 450 crores being obtained as funds to resume operations. However, now, the airline has extended the deadline for submitting expressions of interest from 8 August 2023, to 8 September, 2023.
