MUMBAI- The Interim Resolution Professional (IRP) of Indian ULCC Go First (G8) has presented a revival plan of six months to the Directorate General of Civil Aviation (DGCA), stating their readiness to resume operations with 26 operational aircraft and a pilot workforce of 400.
According to a source, senior executives of Go First held discussions with officials from the DGCA on Monday. Subsequently, to outline their plans for the airline’s revival.
Go First to Resume Operations
According to sources familiar with the matter, Go First, whose voluntary insolvency petition was accepted by the National Company Law Tribunal (NCLT) on May 10, has informed the DGCA that oil marketing companies have expressed their support.
Before filing for insolvency, the carrier was operating on cash and carry terms with oil marketing companies, requiring it to settle its dues daily. Presently, the airline’s operations remain suspended until June 4th.
The revival plan also mentions the backing of 15 out of the 20 prominent travel agents for ticketing services.
Once the revival plan receives approval from the DGCA, Go First stated that it can promptly initiate chartered flights between Delhi-Srinagar and Delhi-Leh with two aircraft.
In the following days, it will be able to resume scheduled services. Primarily on the Pune, Bagdogra, and Goa routes. Further, the airline has expressed its ability to allocate eight to 10 aircraft for the scheduled services.
Go First had previously stated that the DGCA would conduct an audit of its preparedness. Before granting permission to resume operations.
Challenges
The primary obstacle faced by the airline is to possess its aircraft. As several lessors have approached the DGCA to deregister 45 of them.
While the NCLT and National Company Law Appellate Tribunal have currently dismissed the request. The lessors have taken the matter to the Delhi High Court.
Go First currently employs 7,000 individuals and has incurred a default amounting to Rs 2,660 crore toward aircraft lessors and Rs 1,202 crore toward its vendors.
The total liabilities of the airline amount to Rs 11,463 crore, with bank dues accounting for Rs 6,521 crore. Among the bank dues, Rs 1,300 crore has been utilized under the government’s emergency credit line guarantee scheme.
The airline’s fleet consists of 54 aircraft. Of these, 28 are grounded due to engine problems with Pratt & Whitney, and 26 are in operation.
Go First Appeal DGCA to Not Revoke AOP
According to reliable Hindu business line sources within the DGCA, Go First has responded to the show-cause notice issued by the regulatory body.
In its response, the airline clarified its decision to file for insolvency. It was not a result of its inability to operate but rather aimed at addressing debt-related issues. Further ensuring the uninterrupted operation of its aircraft.
The source stated, “The airline has expressed its intention to resume operations as soon as possible. They have expressed confidence in their ability to do so.”
Additionally, Go First stressed to the DGCA the significance of not canceling the airline’s Air Operator’s Permit (AOP). Doing so would undermine the National Company Law Tribunal’s (NCLT) purpose. Furthermore, it could potentially result in the airline’s downfall.
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