India's cash-strapped airline cancels flights for 3 days

NEW DELHI - India's private airline Go First has announced cancellation of flights for three days since Wednesday for "operational reasons," and offered a full refund to all those who had booked tickets with it, according to a statement of the company, reported Xinhua.

The airline is known to be suffering from a severe financial crisis, while some of its aircraft have also been grounded due to supply chain issues. Wadia Group, the owner of Go First Airlines, is "reluctant to inject further funds after spending over US$300 billion," the Hindustan Times reported.

The cash-strapped airline has filed an application for voluntary insolvency resolution proceedings to the National Company Law Tribunal (NCLT). The company's CEO Kaushik Khona reportedly said, "It is an unfortunate decision (filing for voluntary insolvency resolution proceedings), but it had to be done to protect the interests of the company."

Civil Aviation Minister Jyotiraditya Scindia said it was unfortunate that this operational bottleneck has dealt a blow to the airline's financial position, adding that the government had been assisting the airline in every possible manner and has spoken to stakeholders.

"It is prudent to wait for the judicial process to run its course," he was quoted as saying.

Meanwhile, India's aviation regulator Directorate General of Civil Aviation (DGCA) has issued a show-cause notice to Go First over the abrupt cancellation of its flights. - BERNAMA-XINHUA