Cash-strapped Go First airline on Friday announced the extension of its flight cancellations till May 28, which was supposed to start functioning on May 26. The troubled airline, which is going through insolvency resolution procedures, expressed optimism that it would soon be able to start accepting reservations again.
The airline had previously been asked by aviation regulator Directorate General of Civil Aviation (DGCA) to reimburse customers who had purchased tickets on cancelled flights. Additionally, the airline has stopped selling tickets. According to reports, the aviation regulator will evaluate Go First’s readiness to resume operations.
Reportedly, Go First CEO Kaushik Khona promised that before operations resumed, employees’ April salaries would be credited. The DGCA had asked the low-cost carrier to submit a detailed plan for the revival of its operations within 30 days, including information about the availability of operational planes and pilots. Lessors are trying to reclaim the aircraft they leased to the airline after it ceased operations on May 3. The airline was also advised by the aviation regulator to submit a thorough restructuring plan on May 24 in order to sustainably resume operations. The plan must be delivered within a 30-day window.
Go First has been asked to provide information regarding the availability of the fleet of operational aircraft, pilots, and other personnel, maintenance plans, funding and working capital, and agreements with lessors and vendors. After Go First submits its revival plan, the regulator will review it to determine the next course of action, the source told PTI. The airline had already responded to the DGCA’s May 8 show cause notice. In its response, Go First asked if it might be permitted to use the moratorium period to create a thorough restructuring plan for restarting operations and submit the same to the DGCA for approval before restarting operations.
For failing to continue operating the service in a safe, effective, and dependable manner, the regulator had given the airline a show-cause notice. While on May 2, the airline announced that it would file a plea for voluntary insolvency proceedings along with the suspension of flights for May 3 and 4. Back then as well, the DGCA issued a notice to the airline as it cancelled the flights without informing them.
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