MUMBAI- According to a report, the creditors of Go First (G8) Airlines have taken decisive action by replacing the officials associated with the company’s bankruptcy proceedings.
This move signifies their intention to assume complete control of the carrier’s resolution process at the National Company Law Tribunal (NCLT).
According to a report by the Economic Times, the committee of creditors (CoC) of Go First Airlines has made changes during its recent meeting. The CoC has replaced the interim resolution professional (IRP). Also, the process advisor and legal agency were previously appointed for the airline.
Go First Creditors Replace Bankruptcy Officials
Go First has voluntarily filed for insolvency under the Insolvency and Bankruptcy Code (IBC). Further, it is subsequently granted bankruptcy protection by the National Company Law Tribunal (NCLT).
According to a recent report from PTI, the Committee of Creditors (CoC) appointed Shailendra Ajmera as the case resolution professional (RP).
Representatives from four banks, namely Bank of Baroda, Central Bank of India, IDBI, and Deutsche Bank, visited the Go First office and held a meeting on Friday. As mentioned in the PTI report, the CoC was established after the meeting.
The CoC will review and develop a revival plan for the financially challenged airline. Once the plan receives approval, it will be submitted to the Directorate General of Civil Aviation (DGCA).
Previously, Go First had presented a revival plan to the aviation regulator. Further outlining its intention to recommence operations with a fleet of 26 aircraft.
Out of these, 22 aircraft will be utilized for active operations, while 4 will serve as reserves. Subsequently, the plan also included a proposal for 152 daily flights.
DGCA Assessing Go First Restart Plan
The airline is currently undergoing bankruptcy proceedings. During a recent media interaction, Jyotiraditya Scindia informed reporters that the DGCA has raised some inquiries regarding the flight resumption plan submitted by Go First.
The airline is expected to respond to these queries. The DGCA can provide its approval, and the plan can proceed further.
“The aviation sector in India operates under a deregulated framework. Our role as regulators is to facilitate its growth,” he stated. “While discussing airlines like Go First and Jet Airways, it’s important to acknowledge the success stories of new carriers like Akasa and small regional airlines.
We hope to see more airlines emerge and contribute to the industry,” he further emphasized.
“The current capacity constraints have led to a significant increase in seat load factors. We have advised airlines to review and rationalize their pricing strategies, closely monitoring their fare structures,” added Scindia
“Specifically, 4-5 cities have experienced higher fares. We are closely monitoring the situation. I am pleased to note that there has been a recent decline in spot fares on these routes over the past two days,” mentioned Scindia.
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