Jyoti Mayal, President of Travel Agents Association of India (TAAI) has expressed concern over the sudden cancellation of all flights by GO First Airline.
The Wadia Group-backed airline voluntarily filed for bankruptcy on 2 May at the Delhi bench of the National Company Law Tribunal (NCLT), citing issues with aircraft engines made by Pratt & Whitney. Consequently, the airline suspended flights scheduled for May 3-5.
Sources privy to the matter have told Travel Trade Insider that the cancellation of flights may continue till mid of this month. Go First has already filed an application for voluntary insolvency resolution proceedings before National Company Law Tribunal (NCLT), blaming “faulty” Pratt & Whitney (P&W) engines for the grounding of about half its fleet.
As another Indian carrier is on the verge of collapse following Kingfisher Airlines and Jet Airways, Mayal stressed on the immediate need to put procedures and protocols in place to safeguard the interest of both consumers and travel agents.
The insolvency proceedings were aimed at reviving the airline and not selling it, Chief Executive Kaushik Khona told Reuters in an interview, adding that the company had made all payments to Pratt & Whitney.
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, Ministry of Aviation, Ministry of Tourism, including the Prime Minister (Narendra Modi) 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.