Amid financial distress, budget airline Go First is gearing up to resume its flight services from May 24, this year. As per the media reports, the airline has sketched out a business plan to resume its operations on a smaller scale compared to before and restart with 23 aircraft.
According to a statement quoted in Economic Times’ report,” The airline has 27 aircraft which were operating till May 2. It has 51 and 37 departure slots at the main airports of Delhi and Mumbai. There is a plan to resume operation as early as possible but it will be with a truncated schedule.”
The new development follows the Wednesday order by the National Company Law Tribunal (NCLT) allowing IBC proceedings against the airline. The tribunal selected Abhilash Lal to serve as Go First’s resolution specialist. The business news portal also reported that following a meeting on May 11, the airline will ask the authorities for approval to resume bookings after discussing its plans to resume flights with the Indian government.
In addition, the airline will provide the Directorate General of Civil Aviation (DGCA) with a resume plan that lists the number of aircraft it will fly and the locations it will visit. Amidst a financial crisis brought on by the grounding of more than half of its fleet due to the unavailability of Pratt & Whitney engines, Go First, which has been operating for more than 17 years, stopped flights as of May 3.
The tribunal placed the company under a moratorium of protection on Wednesday, and the suspended board of directors was instructed to help the IRP manage the business during insolvency proceedings. Additionally, it mandated that the business remain a “going concern” and that no employees be laid off.
Meanwhile, the Wadia group-owned airline announced on Wednesday that all scheduled flights up until May 19 have been cancelled for “operational reasons”.
