The Airports Authority of India (AAI), which previously requested GoAir to clear unpaid dues of approximately of 50 crores, had placed the airline in cash and transport mode from 11 August. This means GoAir would now be expected to pay for AAI-operated airport infrastructure facilities upfront.
The circular said, the competent Authority has approved to put the operation of M/s Go Air on cash & carry basis out of all AAI Airports w.e.f. 0001 hrs. of 11th August 2020.
Managed by Wadia Group, GoAir said that its services at airports will continue as usual and that AAI Decision would not impact passengers.
The pandemic affected Indian airlines, including GoAir, as well as the consequent lockdowns, travel curbs, and concerns of contamination, which has dented demand.
At present, airlines have been unable to offset the income from their flights by paying their fixed costs, which prompted others to pay the vendor defaults.
The Covid 19 pandemic has infected millions of airlines worldwide in the Asia-Pacific nations. Asia-Pacific Airlines, like India, will lose $29 billion in 2020, making it the worst aviation region.
