Go First gets 30 days to submit revival plan

Go First

Rama Krishna Sangem

Here is some hope for the grounded Go First airlines to survive. The DGCA, director general of civil aviation, has asked the private airlines, owned by Wadias, to submit a revival plan within a month. The plan should include all details like fleet, staff, and other financial repayment schedules to vendors..

DGCA is India’s aviation regulator. It has given Go First up to 30 days to submit a comprehensive revival plan, after the airline filed for insolvency and suspended flights on May 2. Go First was served a show cause notice by the Directorate General of Civil Aviation  on May 8. On May 10, the National Company Law Tribunal (NCLT) admitted the airline’s voluntary insolvency petition.

The airline, in its response to DGCA’s notice, said on May 25, Wednesday that it should be allowed to use the moratorium period to prepare a comprehensive restructuring plan.


30 days time for the plan

Accordingly, DGCA asked the airline to submit within 30 days a comprehensive plan for sustainable reviving operations. “The airline has been asked to furnish the status of availability of operational aircraft fleet, post holders required, pilots and other personnel, maintenance arrangements, funding/working capital, arrangements with lessors and vendors etc. for sustainable revival of operations,” said DGCA in a statement.

Go First operated around 200 flights daily before suspending operations. The airline has 54 aircraft of which 28 are grounded due to engine woes. Lessors have also moved the Delhi High Court and NCLT seeking to secure their aircraft after the airline was given a moratorium. Lessors have already terminated leases of 45 of 54 aircraft in Go First fleet.

Earlier in May, a senior Go First executive had said the airline has access to Rs 300 crore of funds and expects to start operations as soon as possible. This includes around Rs 208 crore of pre-sanctioned loan which can be disbursed following approval from committee of creditors.

Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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Rama Krishna Sangem

Excel India national news magazine is a media startup founded and piloted by Rama Krishna Sangem, a Hyderabad based senior journalist with over three decade experience in the field of media, mostly in print journalism. His rich experience in reporting for both Telugu and English newspapers and heading a TV news channel and some online outfits will be of immense use to this venture. Excel India English news magazine seeks to fill the gap of analytical understanding to our readers who today are confronted with myriad media platforms. Our online version not only offers regular updates and commentary on happenings around us, but also gives larger stories not limited by space constraints of a print magazine. Excel India is ably run by a team of senior journalists committed to values and quality standards in the profession. We urge you all to support and guide us in this endeavour. Reach us at excelindiaweb123@gmail.com