Cash-strapped Go First on Wednesday, June 28, submitted a revival plan to the aviation watchdog, Directorate General of Civil Aviation (DGCA), proposing to restart operations at the earliest possible, two persons directly aware of the matter told CNBC-TV18.
Its resolution professional, Shailendra Ajmera, along with Go First’s former CEO Kaushik Kona today met with DGCA officials and submitted the airline resumption plan, as per people in the know.
The plan outlines the proposed strategies for restarting the airline's operations, which includes deploying a fleet of 26 aircraft, including four additional planes on standby, CNBC-TV18 has learnt.
According to the resumption plan, Go First aims to operate from 22 airports and fly on 78 routes, with approximately 160 daily flights. The airline is keen on resuming operations at the earliest possible date following the inspection and approval from the DGCA.
To address concerns regarding the availability of pilots and ground staff, the resolution professional has assured the DGCA that there will be an adequate workforce to support the airline's operations, said people quoted earlier.
In response to the resumption plan, the DGCA has indicated that it will conduct an inspection audit next week to evaluate Go First's preparedness, said one of the people directly aware of the plans. This audit will include a safety assessment across several airports, including Mumbai, Delhi, and Bengaluru, it is understood.
The regulatory body aims to ensure that all safety protocols and procedures are in place before granting permission for the airline to resume operations.
While the resumption plan has brought some optimism for the airline's revival, Go First's financial situation remains a concern. Banks, which are the major creditors to the airline, are eagerly waiting for the green signal from the DGCA to seek board approval for releasing interim funding.
CNBC-TV18 had earlier reported that banks had given a conditional in-principal approval for interim funding of approximately Rs 425-450 crore. However, the final approval from the banks is contingent upon the Directorate General of Civil Aviation (DGCA) granting permission for Go First to restart its operations, CNBC-Tv18 had earlier reported.
“We will seek individual board approval for financing only once there is 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 to CNBC-TV18 earlier.
Go First is currently facing outstanding dues of Rs 6,521 crore to various banks, including Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank. The airline's insolvency case has raised apprehensions among its creditors, employees, and passengers alike, who are eagerly awaiting a resolution that would pave the way for the airline's revival.
The submission of the resumption plan to the DGCA marks a crucial milestone in the efforts to revive Go First. The airline's future now rests on the inspection audit and safety assessment that will be conducted by the regulatory authorities.
All eyes will be on the DGCA's decision, which will determine the fate of Go First and its potential to make a comeback in the competitive aviation industry.
First Published: Jun 28, 2023 7:48 PM IST
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