Go First Insolvency: Airline Extends Flight Cancellations Till May 28, To Offer Full Refund

DGCA has advised Go First Airline to submit a comprehensive restructuring/revival plan for a sustainable revival of operations, within a period of 30 days.

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Go First Airline, the cash strapped budget airline owned by the Wadia Group has further extended the cancellation of flights till May 28, 2023. The airline, in an internal memo to the employees, said that they are looking to restart the operations from May 27, 2023. Go First Airline earlier cancelled all flights till May 26, but has further extended it by two days, as against various media reports, suggesting that the airline will most likely start the flight operations from May 27. The low cost air carrier filed for voluntary insolvency proceedings resolution with NCLT and stopped all flight ops from May 3, 2023.  

Go First, formerly Go Air, went into a cash crunch, blaming US engine maker Pratt & Whitney for the situation. The airline said that P&W didn't supply engines to Go First on time, resulting in grounding of half of its fleet. Earlier, the Directorate General of Civil Aviation (DGCA) on Wednesday advised Go First Airlines to submit a comprehensive restructuring plan for a sustainable revival of operations.

A senior DGCA official informed that Go First has submitted their response to a show cause notice, issued on May 8, wherein they have requested that they 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.

Accordingly, DGCA advised the airline on Wednesday to submit a comprehensive restructuring/revival plan for a sustainable revival of operations, within a period of 30 days. "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 the sustainable revival of operations," the official said.

The revival plan once submitted by Go First shall be reviewed by DGCA for further appropriate action in the matter, the official added. Go First, along with Jet Airways, are some of the big aviation names in India that went bankrupt, seizing flight operations.