Go First submits 6-month revival plan
Written by Sanjay Kumar
Go First
Airline
- Parent organizations: Wadia Group, Sevakunj Investments & Trading Co. Pvt Ltd.
- Bag information: In economy, 15kg free. More Go First bag information
- Hubs: Indira Gandhi International Airport, MORE
- Founder: Jehangir Wadia
- Founded: 2005
- Headquarters: Mumbai
The interim resolution professional (IRP) of Go First has submitted a 6-month revival plan to the Directorate General of Civil Aviation (DGCA) that outlines the airline’s readiness to resume operations. According to the plan, Go First aims to recommence its services with 26 operational aircraft and a workforce of 400 pilots.
Insiders familiar with the matter revealed that Go First, whose voluntary insolvency petition was accepted by the National Company Law Tribunal (NCLT) on May 10, has informed the DGCA of the support received from oil marketing companies. Previously, these companies had placed the carrier on cash and carry terms, requiring Go First to settle its dues on a daily basis.
At present, the airline’s operations remain suspended till June 4.
The revival plan also highlights the backing of 15 out of the 20 major travel agents in terms of ticketing services.
Once the DGCA grants approval for the revival plan, Go First intends to immediately initiate chartered flights between Delhi-Srinagar and Delhi-Leh, utilizing two aircraft. In the subsequent days, the airline plans to resume scheduled services, primarily on routes connecting Pune, Bagdogra, and Goa. Go First anticipates being able to deploy eight to ten aircraft for these scheduled services.
Earlier, Go First had mentioned that the DGCA would conduct an audit to assess its preparedness before granting permission to resume operations.
Notably, the carrier recently offered a monthly retention allowance of INR 100,000 to captains and INR 50,000 to first officers. Currently, captains receive an average monthly salary of INR 530,000.
One of the primary challenges faced by the airline pertains to retaining its aircraft, as lessors have approached the DGCA seeking the deregistration of 45 of them. While the NCLT and National Company Law Appellate Tribunal have rejected the plea for now, lessors have taken the matter to the Delhi High Court.
Go First currently employs 7,000 individuals and has defaulted on payments amounting to INR 2,660 crore owed to aircraft lessors and INR 1,202 crore owed to vendors. The total liabilities of the airline amount to INR 11,463 crore, with bank dues accounting for INR 6,521 crore. Of this amount, INR 1,300 crore has been utilized under the government’s emergency credit line guarantee scheme.
The airline’s fleet comprises 54 aircraft, out of which 28 are grounded due to engine issues with Pratt & Whitney, while 26 remain operational.
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