The debt-stricken Go First recently informed its employees about delays in salary payments for May and June. The company revealed that salaries would be credited only after the lenders disperse additional interim funding, which has been agreed upon.
During a town hall meeting with the pilots, Go First’s HR department updated the employees on the current developments. They explained that the lenders had agreed to provide additional funds to the airline. However, due to the airline’s current lack of revenue generation, delays in salary disbursement for June were expected. The company officials emphasised that the salaries could only be credited once the lenders released the additional funding.
Employees were informed that the first priority would be to release the remaining portion of May’s salaries. Subsequently, within the first half of the following month, the salaries for June are expected to be credited.
businessline had reported that Shailendra Ajmera, Go First’s Resolution Professional, had requested funding ranging from ₹400 crore to ₹600 crore. The lenders have agreed to provide ₹425 crore.
Meanwhile, Ajmera met with officials from the Directorate General of Civil Aviation (DGCA) on Wednesday to present a revised plan. The airline has proposed restarting operations with 22 aircraft. As part of the process, a diligence report will be required, assessing the airworthiness of the aircraft, the condition of the engines, the number of pilots available, and the post holders., sources said.
Go First had previously accused Pratt and Whitney of being responsible for its decline, claiming that the company failed to deliver spare engines as ordered by an emergency arbitrator. Consequently, Go First had to ground half of its Airbus A320neo fleet, consisting of 25 aircraft, starting from May 1.
On May 2, the airline filed for voluntary insolvency, with outstanding dues of around ₹11,000 crore. Pratt and Whitney were blamed for the temporary suspension of operations.
As of June 28, Go First has announced the suspension of its operations until June 30.