GoAir Launches Government Support to Overcome the Covid-19 Crisis
MUMBAI: The budget provider is seeking financial support from the government amid the coronavirus pandemic and has paid wages to some of its employees on a deferred basis.
In a communication to company employees on Sunday, Wadia Group President Nusli Wadia and GoAir Managing Director Jeh Wadia also said the airline remains focused on restarting operations and resuming flights as soon as it is Lift the lock with a full recovery of your planned network within a few months.
Across the world, airlines are receiving significant financial support from governments to overcome this unprecedented crisis (coronavirus pandemic), primarily to enable them to meet employee requirements, and also to maintain and restart operations and maintain feasibility and structure of its balance sheets, GoAir said.
These airlines have also received substantial support from banking systems with the help provided by federal banks, he added.
We continue to vigorously pursue similar options with our government so that we can, most importantly, improve the position of our employees and also the sustainability of our airline, he said.
GoAir said the airline has been requesting financial support from the banking system, but have not yet reached a conclusion on how they should financially support the airlines despite various RBI warnings.
The airline had very little revenue in the first 17-24 days of March and zero revenue thereafter, GoAir said, adding that it also has to cover all its expenses and responsibilities with its stakeholders, such as lessors, fuel providers and engineering, airports and other major expenses.
The national blockade to curb the COVID-19 pandemic was imposed with effect from March 25 and commercial flight operations have remained suspended since then.
Despite the lack of government support, GoAir released full wages to some 2,500 less fortunate employees, equivalent to 40 percent of our workforce, with the rest of the employees receiving gradual and deferred pay, the company said. .
With no cash inflow, which the company anticipates will continue until the end of May, and without the support of the government or the banking system, we were left with no alternative but to make the unfortunate and sad decision to pay the March, it earned wages in March and April, he added. The airline.
GoAir said it has closed the sale of all tickets on flights operating until May 31 on government instructions, adding that we do not expect to resume commercial flights before June 1, but we are in continuous contact with the aviation ministry. civil and we are monitoring the situation closely.
The airline also said that it has been in continuous contact for the past few weeks with the aviation ministry and the government for financial assistance and structural changes, both fiscal and non-fiscal, but no concrete action has been taken so far.
However, our discussion with lessors, partners and suppliers is progressing with most of the industry-related players who understand and are willing to work with us to try to find suitable solutions, he added.
With the exception of 2,500 employees, who are the least fortunate among us in the GoAir family, we were also forced to place a substantial portion of our employees on temporary vacations without pay. The limitations of our resources are not of our own making and the sacrifices we are imposing on them are sadly beyond our control, the airline said.
The GoAir CEO has taken a 50 percent pay cut and has voluntarily deferred most of his balance compensation, and senior management has also cut substantial salary cuts and has also deferred part of his compensation.
He also said that in preparation for resuming operations, the airline has reviewed and is executing all health and safety related requirements in the context of the pandemic.