DGCA grants 30 days to Go First to submit revival plan
The Directorate General of Civil Aviation (DGCA) has granted 30 days to cash-strapped airline Go First to submit a restructuring or revival plan, including on fleet, pilots, and maintenance plans.
The low-cost airline had stopped flying on May 3 and is undergoing voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT).
The aviation regulator's order came after the airline had submitted their response to the show cause notice issued by the DGCA on May 8.
According to the DGCA official, the airline has requested to be allowed to use the moratorium period to prepare a comprehensive restructuring plan for restarting operations.
"They will present it to the DGCA for the requisite regulatory approvals before restarting operations," said the official.
The DGCA will assess the revival plan after Go First submits it to determine the next best course of action.
As for funds to restart operations, Go Airlines CEO Kaushik Khona had earlier told IANS that the company is yet to draw the balance Rs 208 crore of the Rs 1,500 crore sanctioned under the Emergency Line Credit Guarantee Scheme (ELCGS).
According to him, the airline needs about Rs 17-18 crore per day for its operations as the trade partners may provide the needed items -- fuel and others -- on cash and carry basis.
Khona had also said that the airline will be able to fly again soon with its planes to be up in the air in 7/8 days once the petition is admitted.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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