Go First airline has been struggling with engine problems for a long time. (Reuters)
The developments for Go First, which has been flying for more than 17 years, also come at a time when domestic air traffic is on an upward trajectory.
No-frills carrier Go First which is filing for insolvency and canceling flights is bad for the airline industry as the move will slash capacity and could drive up airfares on some routes, the group of agents said on Wednesday. TAAI trips.
Mired by an acute financial crisis due to the grounding of more than half of its fleet amid P&W engine supply problems, Go First canceled flights for three days from May 3.
In addition, the Wadia Group-owned airline has filed for voluntary insolvency resolution under the Insolvency and Bankruptcy Code (IBC).
“It’s bad for the (airline) industry…It’s such a fragile industry…we’ve lost millions of rupees in Kingfisher Airlines, in Jet Airways and we have another one that’s down. bankruptcy (proceeding),” Travel Agents Association of India (TAAI) President Jyoti Mayal told PTI.
The developments for Go First, which has been flying for more than 17 years, also come at a time when domestic air traffic is on an upward trajectory.
Mayal said that right now there is a demand for air travel as it is holiday season and “we expect fares to increase in areas where he (Go First) was flying. In the coming weeks the fares will probably go up.” On reserved tickets, she said it’s the company that has to reimburse and if they go bankrupt the rules are different. “Those are the challenges which we will raise. focused towards”.
In a statement, TAAI expressed concern over the sudden cancellation of flights by Go First.
“The cancellations and refunds of tickets to its members and consumers have raised concerns among TAAI, who fear travel agents will be negatively affected, presenting a significant financial blow as they struggle to recover post-Covid,” a he declared.
TAAI also said it was asking for action to address airline failings. “The association advocated for protection through ticket insurance or by placing funds in an escrow account with the government to protect the entire ecosystem,” she said, adding that the government should put in place policies to protect the money of consumers and service providers.
TAAI has approximately 2,800 members.
In the summer schedule which runs from March 26 to October 28, Go First is to operate 1,538 flights per week.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
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