'Unfortunate...' Says Aviation Minister Scindia As Go First Files For Bankruptcy

Civil Aviation Minister Jyotiraditya Scindia has given his first reaction on the Go First insolvency proceedings. The Union Minister said it was unfortunate that the operational bottleneck related to engine supplies has dealt a blow to the airline's financial position, reported ANI. Against the backdrop of the airline filing an application for voluntary insolvency resolution proceedings, the minister said, "It is prudent to wait for the judicial process to run its course". Faced with a severe financial crunch, the budget carrier has also decided to cancel flights for May 3 and 4.

"Go First has been faced with critical supply chain issues with regard to their engines. The Government of India has been assisting the airline in every possible manner. The issue has also been taken up with the stakeholders involved," Scindia said in a statement. He noted that it is unfortunate that this operational bottleneck has dealt a blow to the airline's financial position.

"It has come to our knowledge that the airline has applied to the NCLT. It is prudent to wait for the judicial process to run its course," he said. Further, Scindia said the Directorate General of Civil Aviation (DGCA) has issued a notice to the airline on the sudden suspension of flights. It is incumbent upon the airline to make alternative travel arrangements for passengers, so that inconvenience is minimal, he added.

On the other hand, the civil aviation ministry is keeping a close watch on the developments at crisis-hit Go First and the proceedings that are expected at the National Company Law Tribunal (NCLT) this week, reported PTI quoting a senior official.

The country's civil aviation sector is strong and growing but the external issue of global supply chain disruptions is a primary reason for the Go First situation, the official added. Domestic air traffic touched an "all-time high" of 4,56,082 passengers in a single day on April 30.

Go First, which has been flying for more than 17 years, carried 29.11 lakh domestic passengers in the first quarter of this year and its market share during this period was 7.8 per cent.