- By Ashita Singh
- Sun, 03 Sep 2023 03:37 PM (IST)
- Source:JND
Both Cash-strapped flight carriers Go First and Jet Airways have lost their airline codes ‘G8 and 9W’ assigned by the International Air Transport Association (IATA). According to reports, their airline codes were scrapped for being non-operational.
According to a report published by the Financial Express, the IATA heads have said that an airline needs to be operational for the basic eligibility for an IATA two-letter designator. Go First airline stopped operating commercial flights in early May this year.
The withdrawal of these airline codes will be a major setback for the airlines as it can hamper ticket and reservation services, as well as baggage handling procedures Go First's plan to refund money to passengers booked on their flights after May 3, when the airline suspended operations.
The refund plan, submitted by Go First management led by the Resolution Professional (RP), includes a mix of payment via credit notes issued to travel agents and passengers, and payment through revenue earned through operations.
The NCLAT has given the Jalan-Kalrock consortium, the successful bidder for Jet Airways, time till September 30 to clear dues worth Rs 350 crore to lenders of the grounded airline. The tribunal also accepted the consortium's plea to adjust Rs 150 crore from a performance bank guarantee towards the payment of Rs 350 crore.
Jet Airways was grounded in April 2019 after running into financial difficulties. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium. The NCLT's decision on Go First's refund plan is expected in the coming weeks. The decision on Jet Airways' ownership transfer is likely to be taken after September 30.
The developments come at a time when the Indian aviation sector is facing headwinds due to rising fuel prices and the ongoing COVID-19 pandemic. The refund plan by Go First and the ownership transfer of Jet Airways are important milestones for the sector, as they will help to restore confidence among passengers and investors.