The turbulence for Go First, the grounded airline, continues to escalate as more than 150 employees have resigned within a week due to mounting uncertainties and the non-payment of salaries for three consecutive months.
Employees Seek Stability Amidst Unsettled Circumstances
The current exodus is a consequence of the airline’s deteriorating financial condition and its inability to fulfill its promise of timely salary disbursements, according to a senior executive within the organization. The situation took a turn for the worse this month, with an increase in employee dissatisfaction and resignations.
Of the 150 employees who have tendered their resignations, 30 are pilots, 50 belong to the cabin crew, and another 50 are employed in ground handling and engineering roles. This mass departure comes after the Supreme Court’s ruling on August 7, which upheld a Delhi High Court order allowing lessors to inspect and conduct maintenance on the airline’s 30 leased aircraft bi-monthly.
Impending Crisis Amidst Unpaid Dues
The airline is grappling with the repercussions of non-payment for three consecutive months. Employee morale has reached a nadir, and a further mass exodus is expected if prompt salary disbursement does not occur soon. This situation has stemmed from the airline’s financial difficulties, as the resolution professional cited challenging circumstances that impacted cash flows.
Go First CEO Kaushik Khona had initially committed to disbursing salaries by August 10, but this promise remains unfulfilled. The airline’s financial woes were further aggravated by its inability to access funds from the Central Bank of India and IDBI Bank.
Operational Resumption and Uncertain Future
Despite the present turmoil, Go First aims to resume operations as soon as possible. The airline plans to recommence daily operations once it has at least 20 operational aircraft, which would enable it to break even. This ambitious goal hinges on Pratt & Whitney, the American aerospace manufacturer, delivering the necessary engines.
Pratt & Whitney was ordered by the Singapore International Arbitration Commission to provide a minimum of 10 serviceable engines by April 27, 2023, with the remaining engines to be delivered by the year’s end. This directive emerged from Go First’s claims that faulty engines supplied by Pratt & Whitney resulted in half of its fleet of 54 aircraft being grounded.
As Go First navigates this critical juncture, the airline’s ability to address its financial and operational challenges will determine the trajectory of its future in the aviation industry.
