The comittee of creditors (CoC) to distressed airline GoFirst will, on June 21, review the airline’s plans to resume operations and consider its funding requirements, sources told FE. As has been reported, the Directorate General of Civil Aviation (DGCA) has asked the airline to submit a flight resumption plan, which has been ratified by lenders.
The airline said on Monday its flights would remain cancelled until June 22.
Sources indicated the CoC may be “positively inclined” to ratify the resumption plan and approve interim funding of around Rs 200-400 crore. Go First has undrawn limits of about Rs 200 crore under the government’s emergency credit line guarantee scheme (ECLGS), which was introduced to support sectors like travel and tourism that were adversely impacted by the pandemic. Last week, lenders opted to appoint Shailendra Ajmera from KPMG as the Resolution Professional (RP).
The CoC includes Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.
The airline owes financial creditors Rs 6,521 crore, according to filings with the National Company Law Tribunal (NCLT).
GoFirst has indicated in its discussions with the DGCA it would be in a position to deploy 12-15 aircraft in the first phase and thereafter increase the number to about 22-23 for scheduled services. Go First had suspended its operations from May 3 attributing the decision to problems with engines provided by Pratt&Whitney. The airline filed for insolvency in the bankruptcy courts.
According to sources, after receiving necessary approvals, the airline can operate chartered flights between Delhi-Srinagar and Delhi-Leh within 48 hours by deploying two aircraft. Thereafter it will be able to resume scheduled services, mainly on the Leh, Sirnagar, Chandigarh and Thoise routes.