Go First crisis: Airline extends flight cancellations till May 28

Cash-strapped Go First airline has extended its flight cancellations till May 28, India Today reported on Thursday. Earlier, the suspension of flight operations was announced till May 26. The troubled airline, which is undergoing insolvency resolution proceedings, had expressed hope that it would be able to resume bookings shortly.

Earlier, the aviation regulator Directorate General of Civil Aviation (DGCA) had asked the airline to refund passengers who have booked tickets on canceled flights. The airline has also stopped the sale of tickets. The aviation regulator will reportedly conduct an audit of Go First's preparedness to restart its operations.

Go First CEO Kaushik Khona has assured that employees' April salaries would be credited ahead of resuming operations, according to Reuters.

Meanwhile, the DGCA has asked the budget airline to submit a comprehensive plan for the revival of its operations, including details about the availability of operational planes and pilots, within 30 days, the news agency PTI reported on Thursday. The airline stopped flying on May 3 and lessors are looking to take back aircraft leased to the carrier.

According to the news agency, the aviation regulator advised the airline on May 24 to submit a comprehensive restructuring plan for a sustainable revival of operations. The plan has to be submitted within a period of 30 days.

Go First has been asked to furnish the status of the availability of the operational aircraft fleet, pilots, and other personnel, maintenance arrangements, funding and working capital, and arrangements with lessors and vendors, among other details.

The revival plan, once submitted by Go First, would be reviewed by the watchdog for further appropriate action, the source told PTI. The airline had submitted its response to the show cause notice issued by DGCA on May 8.

In its reply, Go First requested that it may be allowed to use the moratorium period to prepare a comprehensive restructuring plan for restarting operations and present the same to DGCA for approvals before restarting operations, the report said.

The regulator had issued the show cause notice to the airline for its failure to continue the operation of the service in a safe, efficient, and reliable manner.

Go First on May 2 announced filing the plea for voluntary insolvency resolution proceedings as well as suspension of flights, initially for two days -- May 3 and 4. At that time also, DGCA had issued a show cause notice to Go First for cancelling flights for May 3 and 4 "without any prior intimation".

(With inputs from PTI)