Cash-strapped Go First and Jet Airways lose airline codes for being non-operational

Go First and Jet Airways, the cash-strapped airlines have lost their airline codes ‘G8 and 9W’ assigned by the International Air Transport Association (IATA) for being non-operational.

The head of communications at IATA said that an airline needs to be operational for the basic eligibility for an IATA two-letter designator. Go First airline stopped operating commercial flights in early May this year. 

The International Air Transport Association (IATA), which provides two-letter designator and numeric codes to airlines, has blocked the 'G8' for Go First for a 12-month period, according to an official.

IATA assigns the airline designator code to companies to use for reservations, schedules, timetables, telecommunications, ticketing, cargo documentation, legal, tariffs and/or other commercial/traffic purposes, according to IATA website.

"One of the requirements for a company to be eligible for an IATA two-letter designator is that the airline needs to be operating. As Go First ceased to operate commercial flights since early May 2023, it is currently not eligible for the IATA two-letter designator," Albert Tjoeng, Head of Corporate Communications at IATA, said in a statement.

He said the two-letter designator and numeric codes will remain blocked for 12 months, during which Go First can ask for the reinstatement of the designator if the requirements are met.

Faced with financial headwinds and engine woes, budget carrier Go First stopped flying on May 3 and is undergoing an insolvency resolution process.

In the case of Jet Airways, which was grounded in April 2019, also the two-letter designator '9W' remains blocked.

IATA codes are key for the identification of an airline, its destinations and traffic documents.

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) on Go First’s plan to refund money to passengers booked on their flights post 3 May – the day airline suspended operations.

The refund plan, submitted by Go First management led by the Resolution Professional (RP), included a mix of payment via credit notes issued to travel agents and passengers, and payment through revenue earned through operations.

Meanwhile, the National Company Appellate Tribunal (NCLAT) gave Jalan-Kalrock consortium, the successful bidder for Jet Airways, time till 30 September to clear dues worth ₹350 crore to lenders of the grounded airline.

The tribunal also accepted the consortium's plea to adjust ₹150 crore from a performance bank guarantee towards the payment of ₹350 crore.

After 30 September, the NCLAT will address the remaining pleas of the case, including the one by workmen seeking recovery of their dues of around ₹224 crore.

On 22 June 2021, the NCLT had approved the resolution plan for Jet Airways submitted by the Jalan-Kalrock consortium, comprising UAE-based non-resident Indian Murari Lal Jalan, who will hold shares in Jet Airways in his personal capacity, and Florian Fritsch who will hold shares through his investment holding company Kalrock Capital Partners Ltd., Cayman.

Jet Airways was grounded in April 2019 after running into financial difficulties. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium.

*With Agency Inputs