Go First crisis: 150 employees to resign due to unpaid salaries

Around 150 employees of Go First, the grounded airline, will reportedly tender their resignations within the next two weeks due to unpaid salaries, according to a recent report by Moneycontrol.

While the airline has been attempting to recommence operations, it has been taking steps to retain its workforce. The staff members, including 30 pilots and 50 cabin crew members, have been grappling with a severe financial setback. Salaries for the months of May, June, and July have remained unpaid, prompting employees to actively seek alternative job opportunities outside the company.

The situation has been further complicated by an ongoing moratorium on financial obligations and asset transfers following insolvency resolution proceedings.

Lessors find themselves unable to deregister and repossess aircraft that were previously leased to the airline. Several lessors, including Accipiter Investments Aircraft 2 Limited, EOS Aviation 12 (Ireland) Limited, Pembroke Aircraft Leasing 11 Limited, and others, have turned to the courts, labeling the denial of deregistration by the DGCA as "illegitimate."

The insolvency resolution process was initiated voluntarily by Go First on May 10, a move affirmed by the NCLAT on May 22. In response, the IRP was appointed to suspend the company's board. Subsequently, numerous lessors sought to reclaim the 45 leased planes from the carrier.

Go First ceased its flight operations on May 3, 2023, as it grapples with the complex web of financial challenges, employee resignations, and regulatory obstacles.