The recently bankrupt airline Go First was asked to submit a revival plan within a month by the Directorate General of Civil Aviation (DGCA) on Wednesday (May 24).
The cash-strapped airline ceased operations on May 3 and filed for bankruptcy, claiming that the forced grounding of approximately half of its aircraft owing to “faulty” Pratt & Whitney engines had caused a financial catastrophe. The airline is unlikely to run its operations for yet another month.
Go First has responded to the DGCA’s May 8 show cause notice by asking to use the moratorium period to create a thorough restructuring strategy for resuming operations and submitting that plan to the DGCA for the necessary regulatory approvals before resuming operations.
As a result, the DGCA advised the airline to create and submit a thorough restructuring plan, which should include details about the status of the operational aircraft fleet’s availability, the post holders needed, the required number of pilots and other personnel, maintenance plans, working capital, agreements with lessors and vendors, etc.
The aviation authority will determine whether to approve the low-cost carrier’s request to resume operations based on its response and the availability of its financial and human resources.