Go First Requests DGCA Approval To Resume Flights With 22 Aircraft For Next 5 Months

Go First, the no-frills airline owned by the Wadia Group has reportedly approached the Directorate General of Civil Aviation (DGCA) seeking approval to resume flights for the next five months with a fleet of 22 aircraft. 

The airline has presented its plan to the DGCA, outlining its intention to begin operations with military charter flights followed by commercial flights. The plan states that Go First has sufficient staff, including 340 pilots, 680 cabin crew members and 530 engineers, to operate the 22 aircraft.

In terms of finances, Go First has mentioned in its business plan that it requires Rs 12 crore for daily operations and has already invested Rs 250 crore in the airline in late April. The company, which filed for insolvency last month, states that it needs Rs 200 crore to resume flying. 

It has access to funds of Rs 400 crore under the centre's emergency credit line guarantee scheme (ECLGS) as well as undrawn credit. Go First is also in discussions with lenders to secure interim funding of Rs 200 crore to cover salaries for April and May, as well as payments to vendors.

The airline expects a steady cash flow once operations restart and plan to allocate funds for lease rent and maintenance reserve starting in July. The CEO of Go First, Kaushik Khona, has been nominated by the resolution professional to oversee day-to-day operations and act as the accountable manager. 

The airline anticipates receiving the DGCA's approval for its plan within a week.

Regarding its financial woes, Go First reportedly owes around Rs 11,400 crore, with Rs 6,520 crore owed to financial creditors. The lenders' consortium led by the central bank is hesitant to release funds to the airline. Funding will be contingent on DGCA approval and the existence of a solid business plan, according to an executive from a bank involved with Go First.

Go First filed for voluntary insolvency proceedings on 3 May due to delays in receiving engines from Pratt & Whitney (PW). More than 50 per cent of its fleet was grounded as a result. The airline has initiated legal action against PW and is seeking enforcement of an arbitration award directing PW to provide Go First with engines. 

The award issued by the Singapore International Arbitration Commission stipulated the dispatch of at least 10 serviceable engines by 27 April with ten additional engines per month until December.