NEW DELHI:  Civil Aviation Minister Jyotiraditya Scindia voiced concern over the situation on Thursday after low-cost airline Go First filed for insolvency resolution due to financial issues, noting that it is not good for the industry.

Speaking to reporters in Delhi, he highlighted that while Go First's financial difficulties have an influence on the civil aviation industry as a whole, it is each company's responsibility to address its own issues.  He reaffirmed the Ministry's commitment to assisting airlines in resolving any underlying issues they may encounter.

Meanwhile, Go Airlines has extended the suspension of flight operations till May 26. Earlier, on May 10th, the NCLT admitted the voluntary insolvency petition filed by the airline and appointed Abhilash Lal as the Interim Resolution Professional (IRP).

The business was also given a moratorium by the Principal Bench of the NCLT in New Delhi, which also ordered the suspended Board of Directors to assist the IRP.  The NCLT also mandated that the suspended management pay Rs 5 crore for the IRP to cover the immediate costs, which the Committee of Creditors (COC), which will be created soon, will amend.

It had also ordered the company from retrenching any of its employees.

Go First Airlines had submitted a petition for resolution to the NCLT on May 2 accusing the world's largest manufacturer of aircraft engines, Pratt & Whitney, of failing to supply spare engines for damaged ones, leading to the grounding of nearly half of its fleet.

A spokeswoman for Pratt & Whitney responded by claiming that Go First's (the brand name for Go Airlines) claims that Pratt & Whitney is to blame for the company's financial situation are unfounded. Pratt & Whitney is investigating its own legal options while vehemently defending itself against Go's allegations. The airline had approached the NCLT to prevent the lessors from seizing control of its aircraft. Lessors must apply to the NCLT with bankruptcy cover.

It was also reported competitor airlines have started talking with the airport authorities to take over the slots occupied by Go Airlines.

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