Go First Submits Re-launch Plan, Aims to Restart Operations in Two Weeks: Reports

According to a report from CNBC-TV18, budget airline Go First has submitted its re-launch proposal to the Directorate General of Civil Aviation (DGCA). The airline plans to resume operations one week after receiving approval from the DGCA and the Committee of Creditors (CoC) for its business plan.

The report states that Go First intends to commence operations with a fleet of 26 aircraft, operating over 150 daily flights. Initially, the airline will focus on metro cities. It is expected that the lenders will provide funding for the relaunch plan.

The report anticipates that the aviation regulator will make a decision on the airline’s relaunch plan by the following week.

Having grounded its flights on May 3, the financially strained airline extended the suspension of its operations until June 4. The airline has faced cash flow issues due to the grounding of more than half of its fleet. It is mainly because of recurring problems and a lack of engine supply from Pratt & Whitney engines.

Before the National Company Law Tribunal (NCLT) took up its case, the airline was actively searching for a strategic investor.

During its operation, the airline functioned under a cash-and-carry mode, which required daily payments for the desired number of flights.

According to industry officials, Go First had 30 grounded aircraft as of March 31, including nine with pending lease payments. The airline’s fleet consists of a total of 61 aircraft, as listed on their website: 56 A320neos and five A320ceos.

The decline in passenger revenue occurred during a period of high airfares and increased traffic following the pandemic. Despite this, Go First aims to operate 1,538 flights per week in the current summer schedule, which is 40 flights fewer compared to the previous year. This seasonal schedule began on March 26 and will continue until October 28.

Since July 2022, when Go First was first compelled to ground its aircraft, the airline’s market share has decreased. The market share has contracted to 8 percent, carrying 963,000 passengers in February, down from its peak of 11.1 percent when it transported 1.27 million passengers in May 2022.

The decline in passenger numbers has had a significant impact on Go First’s financials. As per regulatory filings, the airline reported a net loss of $218 million in FY22, twice the amount of the previous year’s loss of $105 million.

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