Go First seeks DGCA approval to restart flights for next 5 months with 22 planes: Report 

Wadia Group-owned no-frills airline Go First on Monday sought the approval to restart flights with 22 aircraft for the next five months from the Directorate General of Civil Aviation (DGCA).  

Go First outlined its plan till November and said it aims to restart operations with military charter flights and then commercial flights. The airline management told the DGCA it has 340 pilots, 680 cabin crew, and 530 engineers, sufficient for operating 22 aircraft, The Economic Times reported citing a copy of the plan.  

The no-frills airline mentioned in its business plan that it needs Rs 12 crore to run daily operations and that it has invested Rs 250 crore in the airline in the last week of April. The air carrier, which filed for insolvency last month, stated it needs Rs 200 crore to resume flying.  

Go First also said that it has access to funds of Rs 400 crore under the Centre’s Emergency Credit Line Guarantee Scheme (ECLGS) and undrawn credit.  

Go First is also in talks with lenders to arrange an interim funding to the tune of Rs 200 crore.  The funding will be utilised to pay salaries for April and May and also for making payments to vendors.  

A senior Go First executive told the publication that there will be a steady cash flow once flying operations start. The executive added that the airline plans to pay lease rent and maintenance reserve from July.  

Go First resolution professional Abhilash Lal has nominated the airline’s CEO Kaushik Khona to run day-to-day operations and act as the accountable manager. The airline expects DGCA’s approval for the plan within a week, people aware of the matter said.  

The civil aviation regulator last week sought a resumption plan after a meeting with the Go First management. DGCA also wanted assurances on the availability of pilots and cabin crew for seamless operations, as per senior executives. 

Go First financial woes 

The airline owes around Rs 11,400 crore, of which Rs 6,520 crore is owed to financial creditors, The Economic Times quoted court documents filed by the airline in May. The lenders’ consortium, led by Central Bank, is unwilling to release funds to Go First.  

An executive of a bank having exposure to Go First told the publication: “The funding will be contingent on (whether) DGCA allows the airline to resume operations and if it has a concrete business plan”.  

Go First insolvency proceedings 

On May 3, Go First filed for voluntary insolvency proceedings before the National Company Law Tribunal’s (NCLT) Mumbai bench. The airline attributed this decision to delays in sourcing engines from Pratt & Whitney (PW). The airline said that due to engine supply issues, more than 50 per cent of its fleet was grounded when it suspended services.  

The Wadia Group-owned carrier also filed a lawsuit against PW and sought enforcement of an arbitration award that directed PW to provide Go First with engines.  

The March 31 award by the Singapore International Arbitration Commission (SIAC) directed the engine maker to dispatch at least 10 serviceable, spare, and leased engines by April 27 and 10 more such engines per month until December.  

Also read: Go First grounding: Civil aviation ministry to analyse impacted routes; Indian carriers plan to add more jets

Also read: Crisis-hit Go First extends flight cancellations till June 4 amid 'operational reasons'