New Delhi: The Directorate General of Civil Aviation (DGCA) has granted Go First, a financially struggling airline, a period of 30 days to submit a comprehensive restructuring or revival plan. This plan should include details regarding the fleet, pilots, and maintenance plans. Go First ceased operations on May 3 and is currently undergoing voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT).
The recent order from the aviation regulator followed the airline’s response to a show cause notice issued by the DGCA on May 8. In their response, Go First requested the utilization of the moratorium period to prepare a well-rounded restructuring plan that would facilitate the resumption of operations. The airline intends to present this plan to the DGCA for necessary regulatory approvals before recommencing its services.
Once Go First submits its revival plan, the DGCA will thoroughly evaluate its contents to determine the most suitable course of action. In terms of financial resources needed to restart operations, Kaushik Khona, the CEO of Go Airlines, stated that the company has yet to access the remaining Rs 208 crore from the total amount of Rs 1,500 crore sanctioned under the Emergency Line Credit Guarantee Scheme (ELCGS). According to Khona, the airline requires approximately Rs 17-18 crore per day for its operations, as certain trade partners may require cash payments for essential items such as fuel. Khona further expressed confidence that once the insolvency petition is admitted, the airline will be able to resume flying within 7 to 8 days, with its planes taking to the skies once again.
In conclusion, Go First has been given a 30-day timeframe by the DGCA to submit a restructuring or revival plan encompassing aspects such as the fleet, pilots, and maintenance. The airline, which is currently undergoing voluntary insolvency resolution proceedings, aims to utilize the moratorium period to prepare a comprehensive plan for regulatory approval. The DGCA will assess the plan and decide on the appropriate steps to be taken. Additionally, Go First is yet to access a portion of the sanctioned funds and requires a significant daily amount for operations. However, the CEO remains optimistic about the airline’s ability to resume flights promptly once the insolvency petition is admitted.