Go First Clears Salary Dues Amid Funding Round
Debt-ridden Go First Airlines declared a significant respite for its staff on Monday, just in time for Ganesh Chaturthi and Raksha Bandhan. According to a media statement, the airline has agreed to credit all employees with their whole June income. The move comes after the airline acquired 100 crores in emergency finance from lenders to cover some immediate expenses.
Go First intends to utilise the 100-crore funding to cover parking and airport charges, personnel salaries, insurance premiums, aircraft maintenance, repair and statutory dues.
The airlines chose to extend flight cancellations until 31 August. "Go First flights are cancelled until 31 August 2023 due to operational reasons,” the airline said on X (previously Twitter).
Go First filed for voluntary bankruptcy with the National Company Law Tribunal (NCLT) on 2nd May, canceling all of its flights. Pratt and Whitney, a US-based engine manufacturer, was criticised by the airline for meeting their commitments and delivering the engines on time.
