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Business News/ Companies / News/  Around 150 employees likely to resign from Go First in next two weeks: Report
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Around 150 employees likely to resign from Go First in next two weeks: Report

Go First employees plan to resign due to unpaid salaries. The grounded airline is struggling to raise funds.

Go first airlines (Representative Photo)Premium
Go first airlines (Representative Photo)

As the grounded airline Go First is trying to restart its operation, it faces another challenge to retain its employees as many of the staffs are planning to resign as the salaries are not paid.

According to a report by Moneycontrol, the employees have not received salaries for the last three months of May, June, July. The employees have 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 as reported by Moneycontrol.

The cash-strapped airline has been struggling to raise funds since posting its biggest annual loss in fiscal 2022.

Meanwhile, with a moratorium in force on financial obligations and transfer of assets of Go First in the wake 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 lessors who have approached the high court are: Accipiter Investments Aircraft 2 Limited, EOS Aviation 12 (Ireland) Limited, Pembroke Aircraft Leasing 11 Limited, SMBC Aviation Capital Limited, SFV Aircraft Holdings IRE 9 DAC Ltd, ACG Aircraft Leasing Ireland Ltd and DAE SY 22 13 Ireland Designated Activity Company.

The NCLT had on May 10 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.

Several lessors then approached aviation regulator DGCA for deregistration and repossession of 45 planes they had leased to the carrier.

Go First stopped flying on May 3 this year

*With inputs from agencies

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Published: 16 Aug 2023, 08:24 PM IST
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