Go First Under Scrutiny as DGCA Analyzes Special Audit Report
Go First, a cash-strapped airline that suspended operations on May 3, is now under scrutiny as the Directorate General of Civil Aviation (DGCA) analyzes a special audit report. The airline, which has been in operation for over 17 years, is currently undergoing an insolvency resolution process.
According to a senior DGCA official, the watchdog is carefully examining the findings of the special audit conducted on Go First. The purpose of the audit was to assess the airline’s operational preparedness. The audit took place from July 4 to 6 and covered Go First’s facilities in Mumbai and Delhi.
Simultaneously, Go First is embroiled in a legal battle with aircraft lessors at the Delhi High Court. The court’s ruling on this matter will also play a crucial role in determining the proceedings under the Insolvency and Bankruptcy Code (IBC).
Once the DGCA considers the audit findings and other relevant factors, it will make a decision regarding the approval of Go First’s revival plan. Go First’s Resolution Professional, Shailendra Ajmera has called for Expressions of Interest (EoIs) from potential bidders for the grounded airline. Interested parties have until August 9 to submit their EoIs, and the final list of prospective resolution applicants will be announced on August 19, as stated in the public notice.
As of now, Go First has around 4,200 employees. In the fiscal year ending March 2022, the airline generated revenue of Rs 4,183 crore from its operations. However, its liabilities amount to approximately Rs 11,463 crore. In light of the ongoing situation, Go First has canceled all flights until July 14.
The DGCA’s analysis of the special audit report will provide valuable insights into Go First’s operational status and preparedness. The resolution of the legal battle with aircraft lessors will also significantly impact the airline’s future prospects. The outcome of these developments will shape the decision-making process surrounding Go First’s revival plan and the selection of potential resolution applicants.
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