‘Airfares are deregulated,’ Centre amid Go First crisis. Jyotiraditya Scindia to chair meet today to discuss price hike

The civil aviation ministry is scheduled to engage in discussions with airlines regarding the escalating airfares on specific routes in recent weeks, as reported by PTI citing officials.

As per the report, airfares have witnessed a significant surge, particularly following the suspension of operations by crisis-affected airline Go First starting from May 3.

The meeting with representatives of airlines is likely to be chaired by civil aviation minister Jyotiraditya Scindia, the official told PTI.

According to the official, it was emphasized that airfares are deregulated, and the upcoming meeting with airlines is primarily aimed at monitoring and facilitating the situation.

In response to the increased airfares on specific routes, Minister Scindia had previously mentioned that the ministry is conducting an analysis to assess the impact of Go First's flight suspension on these routes.

Go First is undergoing an insolvency resolution process.

Earlier on Friday, the cash-strapped airline Go First said that extended its flight cancellation until 7 June, 2023, due to 'operational reasons'. It had earlier announced the suspension of flight operations until June 4, pushing it now by three more days.

The airline operator had recently filed for voluntary insolvency.

Earlier Directorate General of Civil Aviation (DGCA) advised Go First Airlines to submit a comprehensive restructuring plan for a sustainable revival of operations, as reported by ANI.

A senior DGCA official earlier said that Go First has submitted their response to a show cause notice, issued on May 8, wherein they have requested that they may be allowed to use the moratorium period to prepare a comprehensive restructuring plan for restarting operations and present the same to DGCA for the requisite regulatory approvals before restarting operations.

Accordingly, DGCA had advised the airline to submit a comprehensive restructuring/revival plan for a sustainable revival of operations, within a period of 30 days. The revival plan once submitted by Go First shall be reviewed by DGCA for further appropriate action in the matter.

(With inputs from agencies)