Go First bankruptcy: DGCA to conduct audit before carrier resumes flight operations
The cash-strapped airline stopped flying from May 3, after it filed for insolvency please citing that it has plunged into a financial crisis after it had to ground about half of its fleet due to "faulty" Pratt & Whitney engines.
- May 24, 2023,
- Updated May 24, 2023 4:15 PM IST
Aviation regulator Directorate General of Civil Aviation (DGCA) has said that it will conduct an audit of Go First’s preparedness before approving the resumption of flight operations from the crisis-hit carrier, according to a communication seen by news agency PTI.
The cash-strapped airline stopped flying from May 3, after it filed for bankruptcy citing that it has plunged into a financial crisis after it had to ground about half of its fleet due to "faulty" Pratt & Whitney engines.
At present, the low-cost airline is under the aegis of an interim resolution professional (IRP), who was appointed by the National Company Law Tribunal (NCLT). Abhilash Lal, backed by Alvarez & Marsal, was named the IRP for Go First on May 10.
On Tuesday, a senior official at the DGCA said the carrier has submitted its response to the regulator’s showcause notice indicating that it is working on the details of a plan to resume flights at the earliest.
In a communication to the staff on Tuesday, the airline said: “DGCA will be conducting an audit to check our preparedness in the coming days. Once approved by the regulator, we would be soon commencing operations.” The communication was sent out by Go First’s Head of Operations Rajit Ranjan last week.
Till now, the Centre has been very supportive and has asked the airline to commence operations as soon as possible. Besides, the communication said the CEO has assured that salaries for the month of April will be credited to their accounts before the commencement of operations.
"Further, from the coming month, the salary will be paid in the 1st week of every month,” the communication stated.
Earlier this month, DGCA had issued a show cause notice to the carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient, and reliable manner.
The airline, after announcing its insolvency plea to the National Company Law Tribunal (NCLT), initially suspended the flights for two days — May 3 and 4. The airline has cancelled all its flights till May 26.
On Tuesday, Go First airlines had informed DGCA that they do not have a ‘definite timeline’ yet for the resumption of operations.
“In a reply to the DGCA, Go First airline said they have no definite timeline for the resumption of operations yet,” a tweet by ANI said citing DGCA.
On Monday, the apex body the National Company Law Appellate Tribunal (NCLAT) had upheld insolvency proceedings against Go First, derailing the airline's lessors, who have been trying to take back their planes.
At least three leasing companies, including SMBC Aviation Capital, had challenged the NCLT ruling granting Go First bankruptcy protection earlier this month.
While granting bankruptcy protection to the carrier, the Delhi bench of the tribunal ordered a moratorium on Go First's assets and leases.
Aviation regulator Directorate General of Civil Aviation (DGCA) has said that it will conduct an audit of Go First’s preparedness before approving the resumption of flight operations from the crisis-hit carrier, according to a communication seen by news agency PTI.
The cash-strapped airline stopped flying from May 3, after it filed for bankruptcy citing that it has plunged into a financial crisis after it had to ground about half of its fleet due to "faulty" Pratt & Whitney engines.
At present, the low-cost airline is under the aegis of an interim resolution professional (IRP), who was appointed by the National Company Law Tribunal (NCLT). Abhilash Lal, backed by Alvarez & Marsal, was named the IRP for Go First on May 10.
On Tuesday, a senior official at the DGCA said the carrier has submitted its response to the regulator’s showcause notice indicating that it is working on the details of a plan to resume flights at the earliest.
In a communication to the staff on Tuesday, the airline said: “DGCA will be conducting an audit to check our preparedness in the coming days. Once approved by the regulator, we would be soon commencing operations.” The communication was sent out by Go First’s Head of Operations Rajit Ranjan last week.
Till now, the Centre has been very supportive and has asked the airline to commence operations as soon as possible. Besides, the communication said the CEO has assured that salaries for the month of April will be credited to their accounts before the commencement of operations.
"Further, from the coming month, the salary will be paid in the 1st week of every month,” the communication stated.
Earlier this month, DGCA had issued a show cause notice to the carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient, and reliable manner.
The airline, after announcing its insolvency plea to the National Company Law Tribunal (NCLT), initially suspended the flights for two days — May 3 and 4. The airline has cancelled all its flights till May 26.
On Tuesday, Go First airlines had informed DGCA that they do not have a ‘definite timeline’ yet for the resumption of operations.
“In a reply to the DGCA, Go First airline said they have no definite timeline for the resumption of operations yet,” a tweet by ANI said citing DGCA.
On Monday, the apex body the National Company Law Appellate Tribunal (NCLAT) had upheld insolvency proceedings against Go First, derailing the airline's lessors, who have been trying to take back their planes.
At least three leasing companies, including SMBC Aviation Capital, had challenged the NCLT ruling granting Go First bankruptcy protection earlier this month.
While granting bankruptcy protection to the carrier, the Delhi bench of the tribunal ordered a moratorium on Go First's assets and leases.