The financially challenged budget carrier, Go First, announced on Friday that it will resume scheduled flight operations after obtaining approval and availability of flight schedules from the Directorate General of Civil Aviation (DGCA), along with additional conditions.
Go First ceased flying on May 3, dealing a significant blow to its passengers. The airline was undergoing an insolvency resolution process, and the aviation regulator DGCA conducted a special audit of the airline after a preliminary review of the resumption plan submitted by the Resolution Professional (RP) for the airline on June 28, 2023.
“Go First may resume scheduled flight operations upon availability of interim funding and approval of flight schedule by DGCA. Additionally, Go First has been instructed to ensure compliance with all applicable regulatory requirements, maintain the airworthiness of the aircraft involved in operations, and subject every aircraft to a satisfactory handling flight prior to deployment for flight operations,” stated a press release, noting that the resumption plan submitted on June 28 was reviewed and accepted by the DGCA.
On May 10, the National Company Law Tribunal (NCLT) accepted the airline’s voluntary request to initiate resolution proceedings. Srinivasan, the grounded airline’s resolution professional, informed the tribunal that the DGCA has formed a special audit committee to inspect the aircraft and assess their readiness before allowing the resumption of operations according to the business resumption plan.
The Delhi High Court permitted several aircraft lessors who had leased their planes to Go First Airlines to conduct inspections and interim maintenance of their planes on July 5. Go First decided to challenge the Delhi High Court’s ruling, as it contradicts the order issued by the National Company Law Tribunal in the case, according to the airline’s resolution professional.
Meanwhile, the airline has filed its reply before the tribunal in response to the pleas filed by the lessors of the aircraft and engines. The lessors claimed that the resolution professional is not maintaining their aircraft as per the NCLT’s last order.
One of the lessors, JSAIL (Jackson Square Aviation Ireland Ltd), informed the tribunal that everything the resolution professional is doing is detrimental to Go First. Counsel Arun Kathpalia stated that holding onto the aircraft will only increase costs and cause additional troubles for Go First.
A two-member NCLT bench consisting of Members Mahendra Khandelwal and Rahul Prasad Bhatnagar granted the lessors one week’s time to file their rejoinder. The matter is scheduled for a hearing on August 4.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
