Bankrupt airline Go First on Tuesday clarified to the civil aviation regulator it does not have any ‘definitive’ timeline to restart flight operations as of now. The clarification was submitted in a reply to the show-cause notice sent to it by the Director General of Civil Aviation (DGCA) after Go First suspended flight operations.
The show-cause notice was issued, on May 8, in view of the sudden cancellation of flights and initiation of corporate insolvency resolution process under IBC under the relevant provisions of the Aircraft Rules, 1937, for their failure to continue the operation of the service in a safe, efficient and reliable manner. The airline had been asked to stop selling tickets. The airline has extended its flight cancellation period till May 26.
A senior DGCA official told FE that Go First has indicated it was working on a restructuring programme before putting out a definitive restart plan. “They have indicated that flight operations will be run under moratorium protection,” the official said.
Before it resumes operations, Go First would need to furnish details of aircraft, destinations and flight schedule, among others.
The development comes a day after the revival prospects for Go First received a boost from a ruling by the National Company Law Appellate Tribunal (NCLAT), which upheld the National Company Law Tribunal’s (NCLT’s) order allowing the airline’s voluntary insolvency resolution.
On May 10, the NCLT had admitted the carrier’s plea to initiate voluntary insolvency resolution proceedings and appointed an IRP to suspend the company’s board. The tribunal subsequently allowed insolvency proceedings. Section 10 of IBC allows a company to approach NCLT for initiation of insolvency after default.
The order was, however, a setback for lessors with the appellate tribunal directing that the NCLT would decide on the repossession of aircraft whose leases were terminated after the after Go First filed for the insolvency process. The NCLT order was challenged, in the NCLAT, by Go First’s four aircraft lessors – SMBC Aviation Capital, GY Aviation, SFV Aircraft Holdings and Engine Leasing Finance BV (ELFC) – owning around 22 aeroplanes. Later, other lessors also moved NCLT and the appellate tribunal on May 15, reserved its order. The airline, which stopped operations on May 3, has some 54 aircraft in its fleet.