Go First, which recently got a conditional approval from the Directorate General of Civil Aviation (DGCA), has reportedly reached out to special situation financiers to seek short-term priority funding to ensure it can start operations, The Economic Times reported. The cash-strapped airline has reportedly approached asset reconstruction companies (ARCs) and distressed debt funds for quick funding.
On Sunday, Go First said that it has cancelled its flight operations until July 25 due to operational reasons. Taking to Twitter, the aviation company said it has filed an application for immediate resolution and revival of operations.
“We regret to inform you that due to operational reasons, Go First flights scheduled till 25th July 2023 have been canceled. We apologize for the inconvenience caused by the flight cancellations," Go First said.
“As you are aware, the company has filed an application for immediate resolution and revival of operations. We will be able to resume bookings shortly. We thank you for your patience," it further tweeted.
On May 2, Go First canceled its flights for the first time and filed for voluntary bankruptcy before the National Company Law Tribunal (NCLT). The low-cost carrier alleged delays on the part of a US-based engine maker, Pratt & Whitney, for its inability to promptly meet obligations -- leading to the grounding of a portion of its fleet.
According to a source, the rate on these funds could be as high as 20 per cent since there is still no clarity of the airline's recovery.
DGCA, in its recent order, said that it examined the resumption plan by Go First and the same was accepted “subject to the outcomes of the writ petitions/applications” pending before the Delhi High Court and the NCLT.
The DGCA said Go First will be required to comply with all applicable regulatory requirements for holding an Air Operator Certificate at all times. It must ensure the continuation of the airworthiness or fitness of all its aircraft engaged in the operations.
The DGCA stated that none of Go First’s aircraft will be deployed for operations without undertaking a satisfactory handling flight. Any change in the company that has any bearing on the resumption plan submitted by the Resolution Professional must be notified to DGCA.
“Resolution Professional shall submit the proposed flight schedule, commensurate with the available resources in terms of airworthy aircraft, qualified pilots, cabin crew, AMEs, flight dispatchers etc., for the consideration ofDGCA after making requisite arrangements for commencement of scheduled flight operations, including the interim funding required for resumption of operations,” it said.
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