DGCA Requests Go First to Submit Revival Plan within 30 Days
On Thursday, the Directorate General of Civil Aviation (DGCA), the aviation regulator, provided a 30-day extension to Go First, an airline facing financial difficulties, to present a detailed plan for the revitalization of its operations. Earlier this week, the airline clarified that they currently lack a specific timeline for resuming their services.
Go First, a low-cost carrier currently undergoing a voluntary insolvency resolution process, ceased its flight operations on May 3.
According to a source cited by PTI, the DGCA advised the airline on May 24 to submit a comprehensive restructuring plan within 30 days, aimed at ensuring a sustainable revival of its operations.
Go First has received a request to provide updates on the current status of its operational aircraft fleet, pilots and other staff, maintenance arrangements, funding, and working capital, as well as its agreements with lessors and vendors. The aim is to gather essential information regarding these aspects.
Once Go First submits its revival plan, it will undergo a thorough review by the regulatory authority. This review will determine the appropriate actions to be taken, as stated by a reliable source.
Following the issuance of a show cause notice by the Directorate General of Civil Aviation (DGCA) on May 8, Go First promptly responded by submitting its detailed response.
Go First Request
In their response, Go First expressed their request to utilize the moratorium period to formulate a comprehensive restructuring plan. The objective is to prepare for the resumption of operations, subject to approval from DGCA. The airline intends to present this restructuring plan to the regulatory authority before recommencing its operations, according to the same source.
The regulatory authority had issued a notice to explain or justify their actions based on the relevant provisions of the Aircraft Rules, 1937, as the service failed to maintain safe, efficient, and reliable operations.
Go First announced on May 2 that they had filed a plea for voluntary insolvency resolution proceedings and requested the temporary suspension of flights for two days initially, May 3 and 4.
During that time, the DGCA also issued a notice to Go First, questioning the cancellation of flights on May 3 and 4 without any prior notification. The suspension of flights has been prolonged.
On May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the decision made by the NCLT to accept Go First’s plea for voluntary insolvency resolution proceedings.
Four lessors submitted petitions opposing the airline’s insolvency resolution proceedings, which prompted the ruling.
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