Aviation Regulator DGCA Asks Go First To Submit Revival Plan Within 30 Days
GoFirst has been asked to provide the availability status of the operational aircraft fleet.
New Delhi:
Aviation watchdog DGCA has asked cash-strapped GoFirst to submit a comprehensive plan to revive its operations, including details on the availability of operational aircraft and pilots, within 30 days.
The no-frills carrier, which is going through a voluntary bankruptcy resolution process, stopped flying on May 3 and the lessors are trying to get back the planes leased to the carrier.
The regulator advised the airline on May 24 to come up with a comprehensive restructuring plan for sustainable recovery of operations, a source in the Directorate General of Civil Aviation (DGCA) said. The plan has to be submitted within a period of 30 days, the source added.
GoFirst has been asked to provide operational aircraft fleet, availability of pilots and other personnel, maintenance arrangements, funding and working capital, and arrangements with tenants and vendors, among other details.
The rehabilitation plan once submitted by Go-First will be reviewed by the watchdog for further appropriate action.
The airline had filed its reply to the show cause notice issued by the DGCA on May 8.
In its response, GoFirst requested that it be allowed to use the moratorium period to prepare a comprehensive restructuring plan for resumption and get it approved by the DGCA before resumption. To be served, the source said.
The regulator had issued a show cause notice under the relevant provisions of the Aircraft Rules, 1937 for failure to continue the service in a safe, efficient and reliable manner.
On May 2, GoFirst announced the filing of voluntary bankruptcy resolution proceedings as well as the suspension of flights, initially for two days — May 3 and 4.
Even then, the DGCA had issued a show-cause notice to GoFirst for canceling the May 3 and 4 flights “without any prior notice”. The suspension of flights has been extended.
On May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the NCLT’s decision to admit Go First’s application for voluntary insolvency resolution proceedings.
The decision comes on petitions filed by four lessors opposing the airline’s bankruptcy resolution proceedings.
(Other than the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)