Go First former CEO Kaushik Kona, IRP Shailendra Ajmera at DGCA office, likely to submit revival plan

“We will seek individual board approval for financing only once there is an assurance from DGCA about restarting Go First operations. As of now, this is only in-principle approval which IRP (insolvency resolution professional) had sought,” said one of the bankers to the airline. This move underscores the cautious approach taken by the lenders, ensuring that the airline has the necessary regulatory clearance before disbursing funds.

The developments come as Go First, formerly known as GoAir, has been grappling with financial difficulties, which led to its admission into the Insolvency and Bankruptcy Code (IBC) on May 10. The airline has outstanding debts amounting to Rs 6,521 crore, owed to various banks including Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank.

The cash-strapped airline filed for bankruptcy, blaming ‘faulty’ Pratt & Whitney engines which led to the grounding of half its fleet, and revenue hit.

As part of the ongoing financial restructuring efforts, Go First has cancelled all its flights until June 30, as of now. This temporary halt in operations is aimed at minimising costs and conserving resources while the airline works towards resolving its financial woes.