Previously grounded airline, Go First has been trying its level best to restart its operation but it faces another challenge to retain its employees as majority of the staff have planned to resign as the their salaries are either insufficient or not paid at all.
The employees have ceased to receive their salaries since the last three months of May, June, July. The employees have already started to look for jobs in other areas. According to senior executive of Go First, around 150 employees which includes 30 pilots and 50 cabin crew members as well are planning to resign in the next two weeks . The cash-strapped airline has been struggling to raise funds since posting its biggest annual loss in the fiscal year of 2022. Meanwhile, with a moratorium in force on financial obligations and transfer of assets of Go First at the rise of the insolvency resolution proceedings, the lessors are unable to deregister and take back the aircraft leased to the carrier. The lessors had earlier told the high court that denial of deregistration by the DGCA was “illegitimate”. The NCLT had on May 10 initially allowed the voluntary insolvency resolution plea of Go First. On May 22, the NCLAT upheld the order of the Delhi-based principal bench of NCLT, which had admitted the plea of Go First to initiate voluntary insolvency resolution proceedings, and appointed the IRP to suspend the company’s board.
As an after effect, several lessors had then approached aviation regulator DGCA for deregistration and repossession of 45 planes they had leased to the carrier. Go First had stopped flying from May 3rd of this year.
