Cash-strapped Go First and Jet Airways lose airline codes for being non-operational: Report
Financial Express. The head of communications at IATA 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 airline codes can disrupt ticket and reservation services along with baggage handling operations as aviation companies use the designator codes for timetables, reservations, ticketing, cargo documentation, schedules, telecommunications, etc., as per FE reports.
Earlier in July, the National Company Law Tribunal (NCLT) sought the consent of the Insolvency and Bankruptcy Board of India (IBBI) and the Committee of Creditors (CoC) on Go First’s plan to refund money to passengers booked on their flights post 3 May – the day airline suspended operations. The refund plan, submitted by Go First management led by the Resolution Professional (RP), included a mix of payment via credit notes issued to travel agents and passengers, and payment through revenue earned through operations.
Meanwhile, the National Company Appellate Tribunal (NCLAT) gave Jalan-Kalrock consortium, the successful bidder for Jet Airways, time till 30 September to clear dues worth ₹350 crore to lenders of the grounded airline. The tribunal also accepted the consortium's plea to adjust ₹150 crore from a performance bank guarantee towards the payment of ₹350 crore.
After 30 September, the NCLAT will address the remaining pleas of the case, including the one by workmen seeking recovery of their dues of around ₹224 crore. On 22 June 2021, the NCLT had approved the resolution plan for Jet Airways submitted by the Jalan-Kalrock consortium, comprising UAE-based non-resident Indian Murari Lal Jalan, who will hold
. Read more on livemint.com
