The Go First Airline Crisis: Navigating Turbulent Times

 

The Go First Airline Crisis: Navigating Turbulent Times

By Vivek Patel

Introduction

The month of May has brought consistent turbulence to the aviation industry, following the crash of Go First and the subsequent suspension of its flights. With thousands of employees facing an uncertain future and a surge in airfares, stakeholders are working tirelessly to revive the budget airline. In this article, we will delve into the details of the Go First airline crisis, exploring the causes, consequences, and potential solutions.

The Root of the Crisis: Non-Availability of Engines

The crisis at Go First can be traced back to the non-availability of Pratt & Whitney engines, which resulted in the grounding of more than half of its operational A320 neo fleet. As a result, the airline's promoters made the difficult decision to suspend flights and seek voluntary insolvency resolution proceedings on May 2. This move further exacerbated the challenges faced by the airline and its employees.

Suspension of Flights and Voluntary Insolvency

Since May 3, Go First has not operated any flights, and its petition for insolvency proceedings was admitted by the National Company Law Tribunal (NCLT) on May 10. This suspension has had far-reaching consequences, not only for the airline but also for the passengers and other stakeholders. One significant fallout has been the spike in air ticket prices on routes that were previously serviced by Go First, causing inconvenience and budgetary constraints for travelers.

Impact on Employees: Uncertainty and Divide

With more than 7,000 Go First staff facing an uncertain future, the crisis has created a division among employees. While some remain optimistic about the airline's revival and the resumption of operations, others are skeptical, considering the fate of erstwhile airlines like Kingfisher Airlines and Jet Airways. This divide reflects the anxiety and apprehension prevalent among the workforce.

Airfare Surge: Travel Plans Derailed

The suspension of Go First flights has led to a steep increase in airfares on several leisure routes, disrupting the travel plans of summer tourists and challenging their budgets. For instance, the Delhi-Leh return fare reached an exorbitant Rs 52,000, equivalent to the fare for a Delhi-Paris return ticket. This surge in airfares on certain routes is a direct consequence of the reduced capacity in the aviation sector due to Go First's grounding.

Government Intervention and Airfare Regulation

In response to the soaring airfares, the government has urged airlines to exercise moderation and ensure a balance in pricing. However, it has no plans to regulate airfares, as they are market-driven. The Union aviation minister, Jyotiraditya Scindia, has taken note of the surge in airfares and formed a group to study the spikes. Despite allocating Go First's routes to other airlines, the excess demand on these routes has contributed to the inflation in air ticket prices.

Legal Challenges from Aircraft Lessors

Apart from the financial and operational challenges, Go First is also facing legal hurdles from aircraft lessors who have leased planes to the airline. Despite the moratorium on the carrier's financial obligations and the transfer of assets, these lessors are seeking to exercise their rights and reclaim the aircraft. This adds another layer of complexity to the airline's crisis and further complicates the path to recovery.

Revival Plans and Stakeholder Expectations

Despite the current turmoil, efforts are underway to revive Go First and restore its operations. The government and other stakeholders hold high expectations for the airline's comeback. Senior executives of Go First recently engaged in discussions with senior officials of the Directorate General of Civil Aviation (DGCA) to chart out revival plans. These discussions reflect the collective determination to overcome the crisis and bring the airline back to the skies.

Learning from the Past: Kingfisher Airlines and Jet Airways

The skepticism among some Go First employees stems from the unfortunate fate of previous airlines, such as Kingfisher Airlines and Jet Airways. These once-prominent carriers faced financial difficulties and eventually ceased operations, leaving a trail of disruption and job losses. While the circumstances surrounding each airline's crisis may differ, the lessons learned from these experiences can inform the approach to resolving the current situation at Go First.

Conclusion

The Go First airline crisis has sent shockwaves through the aviation industry, impacting employees, passengers, and other stakeholders. The non-availability of engines, suspension of flights, surge in airfares, and legal challenges have created a complex web of issues to address. However, with concerted efforts from all parties involved, there is hope for a revival and a return to normalcy. As the industry navigates these turbulent times, it is crucial to draw from past experiences and work towards sustainable solutions that ensure the long-term viability of airlines like Go First.

Additional Information:

·        Go First had been operating for more than 17 years before the crisis struck.

·        Deep research and analysis are essential to understanding the root causes and potential solutions for the airline crisis.