Go First Revival: Airline Replies To DGCA Notice, To Submit Restructuring Plan Soon

Go First has submitted its response to aviation regulator Directorate General of Civil Aviation (DGCA) show cause notice dated May 08. The airline has requested that it may be allowed to use the moratorium period to prepare a comprehensive restructuring plan for restarting operations and present the same to DGCA for the requisite regulatory approvals before restarting operations.

On Tuesday, a senior official at DGCA said the airline has submitted its response to the regulator’s show cause notice, indicating that it is working on the details of a plan to resume flights at the earliest. In a communication to the staff on Tuesday, the airline said, “DGCA will be conducting an audit to check our preparedness in the coming days. Once approved by the regulator, we would be soon commencing operations”.

The government has been very supportive and has asked the airline to commence operations as soon as possible, it added. The communication was sent out by Go First’s Head of Operations Rajit Ranjan.

Accordingly, DGCA has advised the airline on Wednesday to submit, within a period of 30 days, a comprehensive restructuring/revival plan for a sustainable revival of operations. The airline has been asked to furnish, inter-alia, the status of availability of operational aircraft fleet, post holders required, pilots and other personnel, maintenance arrangements, funding/working capital, arrangements with lessors and vendors etc. for sustainable revival of operations.

The revival plan once submitted by Go First will be reviewed by DGCA for further appropriate action.

Cash-strapped Go First stopped flying on May 3 and is undergoing voluntary insolvency resolution proceedings.

To a query on the resumption of flights by Go First, Civil Aviation Minister Jyotiraditya Scindia on Wednesday said, “We have not received anything from Go First yet… when we do receive (the plan for restarting flights), the DGCA will certainly apply its mind, look at the safety protocols and based on that take a decision”.

Meanwhile, the airline’s communication to the staff also said the CEO has assured that salaries for April will be credited to their accounts before the commencement of operations. “Further, from the coming month, the salary will be paid in the 1st week of every month,” it added.

On May 8, DGCA issued a show cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner.

Go First, on May 2, announced filing the plea for voluntary insolvency resolution proceedings as well as suspension of flights, initially for two days, May 3 and 4.

At that time also, DGCA had issued a show cause notice to Go First for cancelling flights for May 3 and 4 “without any prior intimation”. The airline has cancelled all its flights till May 26.

On Monday, the National Company Law Appellate Tribunal (NCLAT) upheld NCLT’s decision to admit Go First’s plea for voluntary insolvency resolution proceedings. The ruling had come on petitions filed by four lessors opposing the insolvency resolution proceedings of the airline.