The interim resolution professional (IRP) of Go First has submitted a six-month revival plan to the Directorate General of Civil Aviation (DGCA), saying that it is ready to resume operations with 26 operational aircraft and 400 pilots on its rolls.
Sources aware of the development told FE that Go First, whose petition for voluntary insolvency was admitted by the National Company Law Tribunal (NCLT) on May 10, has told the DGCA that oil marketing companies have also offered their support. Before the carrier filed for insolvency, oil marketing companies had put its operation on cash and carry terms, which means it had to clear its dues on a daily basis.
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Currently, the airline’s operations are under suspension till June 4.
The revival plan also cites support of 15 of the 20 major travel agents with regard to ticketing services.
Once the DGCA approves its revival plan, Go First said it can deploy two aircraft to start Delhi-Srinagar and Delhi-Leh chartered flights immediately. Within the next few days, it will be able to resume scheduled services, mainly on the Pune, Bagdogra, and Goa routes. The airline has said it will be able to deploy eight to 10 aircraft for the scheduled services.
Go First had earlier said the DGCA will audit its preparedness before allowing it to resume operations.
Recently, the carrier offered a monthly retention allowance of Rs 100,000 to captains and Rs 50,000 to first officers. Currently, the monthly average salary of captains is Rs 530,000.
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.
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Go First has 7,000 employees on its rolls, and has committed a default of Rs 2,660 crore toward aircraft lessors and Rs 1,202 crore towards its vendors. The total liabilities of the airline are at Rs 11,463 crore, of which bank dues are of Rs 6,521 crore. Of this, Rs 1,300 crore has been drawn under the government’s emergency credit line guarantee scheme.
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.