The audit was conducted from July 4 to 6 and covered the facilities of the carrier in Mumbai and Delhi.
Go First DGCA Audit
The DGCA will decide on approving Go First’s revival plan after taking into account the audit findings and other factors. Cash-strapped Go First, which had been flying for more than 17 years, stopped operations on May 3.
The special audit is done to check the operational preparedness of Go First. The airline and aircraft lessors are engaged in a legal battle before the Delhi High Court.
The high court’s ruling in this regard would also be a key factor in terms of the proceedings under the Insolvency and Bankruptcy Code (IBC).
Airline on Sale
A resolution professional overseeing the insolvency process for Go First (G8) has initiated the next phase by inviting an Expression of Interest (EOI) for the sale of the carrier, as reported in an advertisement in ET on Monday.
The deadline for submitting interest in the airline has been set for August 9.
The publication of Form G, which relates to the invitation for EoI, is an important step towards concluding the insolvency process, stated Abhirup Dasgupta, a partner at HSA Advocates, as reported by Reuters.
Concerns have arisen among lenders due to a Delhi High Court order prohibiting the airline from removing any parts from the aircraft it intends to fly.
The lessors, who own the aircraft, are now facing a ban imposed by the National Company Law Tribunal (NCLT) on recovering the aircraft during the ongoing Insolvency and Bankruptcy Code (IBC) process.
Go First filed for bankruptcy protection in May, attributing the grounding of nearly half of its 54 Airbus A320neo planes to “faulty” Pratt & Whitney engines. In response, the engine company refuted the airline’s claims.
According to Indian law, the EoI process marks the formal commencement of seeking potential buyers or investors for the airline.
The carrier has around 4,200 employees. Its revenue was Rs 4,183 crore from operations in the financial year ended March 2022. Its liabilities are about Rs 11,463 crore.
The airline has canceled all its flights till July 14.
Stay tuned with us. Further, follow us on social media for the latest updates.