‘Can no longer sustain’: Grounded airline Go First CEO Kaushik Khona quits
Go First’s Chief Executive Officer (CEO) Kaushik Khona resigned from his position nearly seven months after the airline filed for insolvency.
Khona was appointed as the CEO of the no-frills airline in 2020 after the incumbent and current Akasa Air CEO, Vinay Dube, stepped down from the position.
Khona said that despite requests to stakeholders, including the resolution professional (RP), committee of creditors and the Wadia group, the airline had failed to pay salaries to its employees “for almost six months”.
“The company which we all built for the last 18 years has significant value. But unfortunately RP has not found anyone who can take this company forward,” Khona said in a message to the airline’s staff.
“I wanted to see that you are all paid your dues but I can no longer sustain and hence with a heavy heart, I have decided to leave,” he added.
This was Khona’s second stint as the airline’s CEO. He had previously served in the same position from 2009 to 2011.
Meanwhile, on Thursday, Senior Advocate Neeraj Kishan Kaul, appearing for the airline’s RP, told Justice Tara Vitasta Ganju, that liquidation of the airline was the last option remaining.
“If I don’t fly, where will I go? I haven’t even touched upon it. People are leaving. Even handling flights is not permitted. How do I maintain aircraft without handling flights?” Kaul asked.
The National Company Law Tribunal (NCLT) has extended the resolution period for the airline by 90 days till February.
On May 3, Go First suspended flights and filed an insolvency application, blaming engine manufacturer Pratt & Whitney (PW) for its cash crunch. The airline stated that about half of its 54 aircraft were grounded on May 3 due to a delay in the supply of engines by the US-based company.
After the airline ceased operations, its lessors had put in applications with the Directorate General of Civil Aviation (DGCA) to repossess more than 40 of the airline’s 54 planes.