Thursday, August 31, 2023

Go First to credit two months of salary in Sept: CEO Kaushik Khona

Mumbai: Grounded airline Go First's CEO Kaushik Khona has informed the airline's employees that the company will credit two more months of unpaid salaries in September.

Last week, the airline had credited full salaries for the month of June to its staff following the approval of the corporate insolvency resolution process (CIRP) cost of Rs 100 crore by the airline's lenders.

The airline did not respond to queries sent by Business Standard until the time this report went to press.

Additionally, around 35 investors have expressed interest in the carrier's sale, and this process is expected to be wrapped up by April next year. Go First resolution professional (RP) Shailendra Ajmera had invited Expression of Interest (EoI) in July.

In the meantime, the RP will run the airline to resume its operations with a fleet of 25 aircraft.

Last month, the Directorate General of Civil Aviation (DGCA) had approved Go First's plan to resume flights subject to the outcome of pending court cases and availability of interim funding. The regulator had approved the airline to operate 15 aircraft or 114 daily flights as part of Go First's resumption plan.

The CIRP costs that were approved last week included Rs 37 crore on salaries for Go First, tax deducted at source (TDS) and provident fund of Rs 20.50 crore on the employee front, and Go First ground support employee health insurance of Rs 1.75 crore.

31/08/2023 Ajinkya Kawale/Business Standard

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