The Directorate General of Civil Aviation (DGCA), which is examining Go First’s plans to restart operations, has sought financial details relating to its liabilities, contracts as well as availability of working capital, sources told FE.
FE had reported, on June 2, that the interim resolution professional (IRP) of Go First has submitted a six-month revival plan to the DGCA, stating that it’s ready to resume operations with 26 operational aircraft and 400 pilots on its rolls. The is the second instance of DGCA seeking clarifications after the submission of the revival plan, to ascertain whether the airline is in a position to resume operations.
Last week, Go First in its first set of clarifications to the regulator had said that it has working capital to pay employees’ salaries and charges for fuel, parking, housing and landing charges for a six-month period. After going through Go First’s initial replies on its operational preparedness, DGCA on Tuesday sought more details.
Besides, the regulator has asked the ailing airline whether its lenders are willing to disburse the Rs 208 crore that the airline has got under the Emergency Credit Line Guarantee Scheme (ECLGS).The airline is banking on restarting its operations through `200 crore and is also trying to raise another `200 crore.
The DGCA has also sought details on the constitution of the committee of creditors (CoC) of the airline. Go First has committed a default of Rs 2,660 crore toward aircraft lessors and `1,202 crore towards its vendors. The total liabilities of the airline are s 11,463 crore, of which bank dues are of `6,521 crore. Of this, `1,300 crore has been drawn under the government’s ECLGS.
The airline had halted flight operations on May 3. The same has been extended June 9.The main challenge before the airline is to retain its aircraft as lessors have approached the DGCA to deregister 45 of them. Though NCLT and National Company Law Appellate Tribunal have for now rejected the plea, lessors have moved the Delhi High Court. The airline has a fleet strength of 54, of which 28 aircraft are grounded due to engine issues with Pratt & Whitney, and 26 are operational. In an unrelated development, the low-cost airline on Tuesday paid the May salaries to its pilots.