Go First, Jet Airways lose airline codes due to non-operational status

Cash-strapped airlines Go First and Jet Airways have lost their airline codes, ‘G8’ and ‘9W,’ respectively, as assigned by the International Air Transport Association (IATA). The reason behind this decision is the non-operational status of both airlines, according to media reports.

The head of communications at IATA clarified that airlines must be operational to meet the basic eligibility criteria for an IATA two-letter designator. Go First ceased commercial flight operations in early May of this year.

The withdrawal of these airline codes can have a significant impact on ticket and reservation services, as well as baggage handling operations. Airlines use these designator codes for various purposes, including timetables, reservations, ticketing, cargo documentation, schedules, and telecommunications.

Refund to passengers 

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) regarding Go First’s plan to refund money to passengers who had booked flights after May 3, the day the airline suspended its operations. The refund plan proposed by Go First’s management, led by the Resolution Professional (RP), involved a combination of credit notes issued to travel agents and passengers and payments from revenue generated through operations.

Meanwhile, the National Company Appellate Tribunal (NCLAT) granted the Jalan-Kalrock consortium, the successful bidder for Jet Airways, an extension until September 30 to settle dues amounting to Rs 350 crore to the grounded airline’s lenders. The consortium’s request to offset Rs 150 crore from a performance bank guarantee toward the payment of Rs 350 crore was also accepted.

After September 30, the NCLAT will address the remaining issues related to the case, including claims by employees seeking recovery of their dues, totalling around Rs 224 crore.

Jet Airways was grounded in April 2019 due to financial difficulties. However, the transfer of ownership has faced delays amid ongoing disputes between lenders and the consortium.

Article source: https://airlines.einnews.com/article/653522306/m2QNxusJVZJ90j7o?ref=rss&ecode=vaZAu9rk30b8KC5H

Author: Avio Time

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