India’s GoAir ordered to settle payments of USD 3,580,588.00 to MIRA
This ruling comes in the wake of GoAir's bankruptcy, which led to the cessation of its operations in 2023.
Travel Trade Maldives
On June 9, 2024, the Maldivian Civil Court ordered GoAir to pay a substantial sum of USD 3,580,588.00 to the Maldives Inland Revenue Authority (MIRA) due to unpaid airport service charges. This ruling comes in the wake of GoAir's bankruptcy, which led to the cessation of its operations in 2023. Before its financial collapse, GoAir was a popular budget airline, offering affordable connections between India and the Maldives.
The court order seeks to recover unpaid taxes from April 2022 to March 2023, the period leading up to the airline’s bankruptcy. During its operational period, GoAir was obligated to pay various departure taxes and airport development fees. These charges included:
Departure Tax:
- USD 30 for every foreign passenger in economy class
- USD 12 for every local passenger in economy class
- USD 60 for every passenger in business class
- USD 90 for every passenger in first class
- USD 120 for every passenger flying private
Airport Development Fees:
- USD 25 for every foreign passenger in economy class
- USD 12 for every local passenger in economy class
- USD 60 for every passenger in business class
- USD 90 for every passenger in first class
- USD 120 for every passenger flying private
Despite these obligations, GoAir failed to make the necessary payments, leading to the accumulation of substantial debt over the year preceding its operational halt. The court has now mandated that GoAir settle these dues within 30 days of the verdict.
