According to sources familiar with the matter, Go First (G8), a low-cost airline, plans to resume its flights by May 24th.
According to insiders, Go First has drafted a business strategy to recommence operations using 23 airplanes, but on a smaller scale.
Go First Plans to Restart flights from May 24
One individual familiar with the situation revealed to ET that the carrier had 27 airplanes in operation until May 2 and possesses 51 and 37 departure slots in Delhi and Mumbai’s major airports, respectively. The plan is to relaunch operations as soon as feasible, albeit with a limited schedule.
According to sources, the airline has discussed its plans to resume operations with the government.
The airline’s current management, which is set to be replaced by a court-appointed resolution professional from consulting firm Alvarez & Marsal, will hold a meeting tomorrow. Following this, they plan to approach the government to resume booking services.
DGCA Issues Notice to Go First
The DGCA has issued a show cause notice to Go First, a cash-strapped airline owned by Wadia Group. For abruptly canceling flights and initiating the corporate insolvency resolution process under IBC.
The DGCA has cited the airline’s inability to operate the service safely, efficiently, and reliably as the reason for issuing the notice. Which is based on the relevant provisions of the Aircraft Rules, 1937.
According to a source, PTI reported that Go First has been given 15 days to respond to the notice. Further, based on the airline’s response, a decision regarding the Air Operators Certificate (AOC) will be made.
After the CEO of Go First said in an interview that he is optimistic about resuming flights within seven days. If the bankruptcy court stops lessors from reclaiming their planes, the aviation regulator has issued its ruling.
Kaushik Khona, the CEO of the crisis-hit airline, expressed optimism in an interview on Saturday. Subsequently, saying that they will be able to save the airline if the court begins the insolvency resolution process immediately. Further, He added that all stakeholders, including oil suppliers and service providers, are aware of their cooperation and transparency.
IndiGo and Air India are looking for Go Assets
According to insiders, Tata Group and IndiGo are talking about landing and parking slots with Go Air’s lessors and airport operators, including those in New Delhi and Mumbai. As per the filings with DGCA, Go First Airline’s lessors are trying to repossess 36 planes.
According to anonymous sources, a number of parties have shown interest in the airport slots, including new carrier Akasa Air.
The competition for Go First’s assets may hinder its efforts to restructure debt and resume operations. This situation mirrors the time when Kingfisher Airlines Ltd., owned by fugitive billionaire Vijay Mallya, was directed to stop selling tickets and eventually ceased operations.
DGCA will decide whether Go First can retain its operating license in two weeks. Further, Sky High XCV Leasing Ltd., ACG Aircraft Leasing Ireland Ltd., and SMBC Aviation Capital Ltd. are among Go First Airline’s major lessors.
Also, this is not the first time that IndiGo and Air India have tried to grab the opportunity to acquire aircraft in the supply chain and delivery delayed market. At the time of Jet Airways‘ shutdown back in 2019. Both the airlines, along with SpiceJet and Go First, tried to acquire the Jet’s plane.
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