Go First Crisis: CEO Meets DGCA Official, Civil Aviation Secretary For Future Course Of Action

The budget airline last Thursday had filed a petition with the NCLT, seeking protection under bankruptcy law, and also sought an interim moratorium to prevent the seizure of its 26 aircraft by lessors.

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Go First CEO Kaushik Khona met DGCA officials right after the National Company Law Tribunal (NCLT), in its judgment on Wednesday, admitted the plea of Go First Airlines for insolvency proceedings.

The CEO also met the civil aviation secretary for any future course of action. The budget airline last Thursday had filed a petition with the National Company Law Tribunal (NCLT), seeking protection under bankruptcy law. It had also sought an interim moratorium to prevent the seizure of its 26 aircraft by aircraft lessors. In addition, the airline sought direction to appoint an insolvency resolution process (IRP) for the betterment of Go First.

The NCLT, the President Justice Ramalingam Sudhakar, and technical member LN Gupta announced the order, adding, "We appoint Abhilash Lal as IRP (Insolvency Resolution Professional). Suspended board of directors will cooperate with the IRP." The airline operator has recently filed an application for immediate resolution under insolvency and revival of its operations.

Meanwhile, Go First has cancelled all its flights until May 19 this year. Earlier, the cancellations were till May 12. The airline said a full refund would be issued to the original mode of payment shortly. Go First currently has around 50 aircraft in its fleet, with 50 per cent grounded due to engine outages.