December 1, 2023 – Mumbai, India
In a significant development for the troubled airline Go First, CEO Kaushik Khona has officially announced his resignation as the company continues to grapple with financial hardships and insolvency proceedings.
Khona, who rejoined Go First in August 2020, conveyed his decision to the airline’s employees through an email on Thursday. Citing the relentless pressure and stress stemming from the airline’s grounded status since May, he expressed gratitude to the staff for their unwavering support and dedication during these challenging times.
Khona expressed hope that the company would overcome its current predicament, resume operations, and settle the pending salaries and dues owed to the employees.
Go First, formerly known as GoAir, once a prominent low-cost carrier in India, faced a series of setbacks, primarily attributed to engine issues plaguing its Pratt & Whitney-powered Airbus A320neo planes. The airline had to ground numerous aircraft, leading to flight cancellations, significant financial losses, and mounting liabilities. The additional impact of the global COVID-19 pandemic further exacerbated the airline’s challenges.
In May 2021, Go First initiated voluntary insolvency resolution proceedings under Section 10 of the Insolvency and Bankruptcy Code (IBC) in a bid to attract potential buyers or investors willing to rescue the airline.
Despite these efforts, the insolvency process has failed to yield positive outcomes for Go First thus far. The Resolution Professional (RP) appointed by the National Company Law Tribunal (NCLT) has struggled to find a suitable bidder or resolution plan for the beleaguered airline. The Committee of Creditors (CoC), consisting of lenders and other stakeholders, has not approved any proposals.
Go First employees, who have been without salaries for nearly six months, have made repeated appeals to the RP, CoC, and the Wadia Group – the airline’s promoters. Despite gaining approval from the Directorate General of Civil Aviation (DGCA) to resume operations after a thorough audit, the employees’ efforts to revive the airline have faced numerous obstacles.
In his parting words, Khona acknowledged his unsuccessful attempts to secure salary payments and resume operations. He emphasized the significant value inherent in Go First but lamented the lack of a willing entity to propel it forward. As he bids farewell, Khona extends his best wishes to the employees for their future endeavors and expresses his prayers for the revival of Go First. The airline’s future remains uncertain, and employees continue to endure financial hardships as they await a resolution to their longstanding predicament.
Also Read:- https://aerohubindia.com/boeing-records-1-6-billion-loss-due-to-decreased-airliner-deliveries/
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