Thursday, August 17, 2023

Go First crisis: Report says airline's 150 more employees resigned in last 2 weeks

Even as crisis-hit Go First airline got Directorate General of Civil Aviation's (DGCA) approval to resume operations, the airline is waging battles on multiple fronts. 

A report said on Wednesday that around 150 Go First employees, including 30 pilots, 50 cabin crew members and 50 ground handling and engineering employees, have resigned in the past two weeks. 

"Employees are frustrated as salaries have not been paid for May, June and July, despite promises of retention bonuses and a quick restart," a senior executive working with the airline told Moneycontrol.

The report said employee confidence has been hit after the Supreme Court, earlier this month, refused to entertain a petition by the interim resolution professional (IRP) of Go First against the Delhi High Court order permitting lessors to inspect their aircraft and carry out maintenance.

A bench of Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra said since the Delhi High Court is seized of the matter and hearing it on a day-to-day basis, it was not going to entertain the plea at this stage. Senior advocate Shyam Divan, appearing for the IRP, said efforts to revive the company and keep it afloat as a going concern will be hit if the lessors are permitted to cancel the lease deed with regard to aircraft and engines. The senior lawyer raised the issue of jurisdictional competence of the high court in the matter.

''We will not entertain. Since the proceedings are pending before the Delhi High Court where petitions are being argued on a day-to-day basis, we are not entertaining this at the present stage. Let the jurisdictional issues also be addressed before the single judge (of the high court)," the bench said. The IRP has challenged the order of a division bench of the high court which had upheld the verdict of the single judge bench in the case. On July 5, the single judge bench of the high court had allowed Go First's lessors to inspect their aircraft at least twice a month and carry out maintenance. It had said there can be no denial of the fact that the aircraft of the petitioner lessors are highly valuable and sophisticated equipment and require maintenance for their preservation.

It had also restrained Go First and its representatives, and the Interim Resolution Professional (IRP) appointed by the NCLT, from removing, replacing or taking out any part or components, or records of the 30 aircraft except with the prior written approval of the lessor of the particular airplane.

16/08/2023 Business Today

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