India’s aviation regulator has given Go First 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 Wednesday that it should be allowed to use the moratorium period to prepare a comprehensive restructuring 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.
Also Read
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.
