The resumption of GoFirst’s operations is being held up as the carrier’s lenders are yet to release funds needed to restart flights, sources told FE. In the absence of working capital, the airline would not be in a position to reclaim its slots or pay for fuel on a ‘cash and carry’ basis.
Although the carrier has been declared a ‘going concern’ by the National Company Law Tribunal, sources said it requires funds to pay airport operators and to buy fuel.
The Committee of Creditors (CoC) is said to be in the process of finalising a funding plan to help the airline restart operations. Apart from the daily usage charges, the airline is required to deposit security amounts for various services. Once the banks sanction the credit, GoFirst will approach the Directorate General of Civil Aviation (DGCA) for a final approval. Last week, the DGCA gave it conditional approval to restart operations with 114 daily flights.
Go First has also applied to airport operators for restoration of its slots and started test flights to prove airworthiness of its operational aircraft.
Go First had filed for voluntary insolvency on May 3 and owes lenders Rs 11,463 crore. Of this, bank dues account for Rs 6,521 crore and Rs 1,300 crore has been drawn down under the government’s emergency credit line guarantee scheme. It is understood to have defaulted to the tune of Rs 2,660 crore to aircraft lessors and Rs 1,202 crore to vendors.