Voluntary Insolvency by GO First
Go First has filed an application for voluntary insolvency resolution proceedings before NCLT
Travel Agents Association of India (TAAI) President Jyoti Mayal has expressed concern over the sudden cancellation of all flights by GO First Airline on 3rd & 4th May 2023, stating that it has put the aviation industry in shock. Go First has filed an application for voluntary insolvency resolution proceedings before NCLT as per media & ministry reports. Mayal commented on the struggles faced by the industry regarding correct procedures and protocols, stating it is surprising that a country considered a power centre faces such challenges pertaining to the aviation sector.
The cancellations and refunds of tickets to its members and consumers have raised concerns at TAAI, who fear that travel agents will be adversely affected, presenting a significant financial blow as they struggle to revive post-covid19.
TAAI has been advocating to the Government of India, the Ministry of Aviation, the Ministry of Tourism, and the Hon. PM himself to ensure the security of the travel industry/consumers and address airline defaults. The association has been advocating for protection through insurance on tickets or placing monies in an escrow account with the government as protection for the entire ecosystem, most importantly the service provider.
As the President of the largest and oldest premier body, Mayal expressed concern that the government is refusing to hear them and implement better policies. The government, along with the Ministry of Aviation and Tourism, needs to bring policies to safeguard consumers' and service providers' money. TAAI has been promised by the Ministry of Aviation to establish a National Task Force with airlines & DGCA, but weak policies and governance will impact the opening of multiple airports and make the aviation industry fragile.
Mayal stressed that travel and tourism service providers are a vital part of the growth of this country and the responsibility of the government. The vision of a Trillion-dollar economy cannot be achieved with such setbacks. Mayal requested once again that the Hon. PM looks into their woes and finds a solution with their support to make them a part of the growth and save them from being crippled.
