Home » Go First Enters Voluntary Insolvency Resolution Proceedings Following Flight Suspension

Go First Enters Voluntary Insolvency Resolution Proceedings Following Flight Suspension

by Nidhi
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Go First, formerly known as GoAir, has entered voluntary insolvency resolution proceedings after suspending all flights on May 3 and 4 due to financial troubles. The airline has struggled to stay afloat amid the COVID-19 pandemic and has been facing mounting losses for several months.The decision to enter insolvency resolution proceedings was taken by the airline’s board of directors after it was unable to secure additional funding from its lenders and investors. The move will allow Go First to restructure its debt and operations under the supervision of an insolvency professional appointed by the National Company Law Tribunal.In a statement, Go First said that the decision to suspend flights was taken due to the “unprecedented and unforeseen” impact of the COVID-19 pandemic on the aviation industry. The airline also said that it was committed to providing full refunds to customers affected by the flight cancellations.The suspension of flights has affected thousands of passengers who had booked tickets with the airline. The company has said that it will work to minimize the inconvenience caused to customers and will make alternate arrangements for those who had booked flights on the affected dates.Go First is the latest Indian airline to face financial difficulties due to the pandemic. Other major airlines, including Air India, Vistara, and SpiceJet, have also reported losses and have had to implement cost-cutting measures in order to stay afloat.The airline industry has been one of the hardest-hit sectors during the COVID-19 pandemic, with international travel severely restricted and domestic travel also impacted due to lockdowns and other restrictions. While there are signs of a recovery in some markets, the industry is likely to take several years to fully recover from the pandemic’s impact.In conclusion, Go First’s decision to enter insolvency resolution proceedings is a reflection of the challenging times faced by the aviation industry. The move will allow the airline to restructure its operations and debt and hopefully emerge as a stronger and more sustainable business in the future.

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