After DGCA audit, Go First proposes to scale down revival plans by 30%

Aviation watchdog Directorate General of Civil Aviation (DGCA) in its audit report on Go First airline has noted the carrier need to either scale down its proposed resumption routine or hire more hands to restart its operations again.

Following this, the grounded carrier, owned by the Wadia Group, has reportedly decided to scale down its resumption plans by around 30 per cent than earlier.

The DGCA conducted a special audit of Go First’s facilities in Delhi and Mumbai between July 4 and 6 and inspected its parked aircraft in Bengaluru, Nagpur, Ahmedabad, Kochi and Kannur. Cash-strapped Go First, which had been flying for more than 17 years, stopped operations on May 3. It is undergoing an insolvency resolution process.

In all, the aviation watchdog has raised 13 observations in its audit report, highlighting that the airline is facing issues such as lack of trained pilots and cases related to funding, refunds and spare parts.

A senior airline official on Wednesday said the airline has now decided to recommence operations, subject to regulatory approval, with 15-18 aircraft and 130 flights per day and ramp up to 160 flights per day with 22 aircraft in the subsequent week.

However, the plan to have 22 aircraft in the fleet with four in reserve and 160 flights per day post resumption, remains unchanged, the official emphasised, PTI reported.

In its pre-audit initial resumption plan submitted to the DGCA in the first week of June, Go First had 115 captains and 225 first officers on its payroll after discounting the crew that sought to quit.

The airline had said it would restart its services with 26 aircraft with around 160 daily flights.

The carrier had also proposed to fly to Leh and Thoise, but the DGCA found that the airline does not have the required number of trained pilots to fly at such high altitudes.

“The DGCA after the audit had sought additional information from us, which we have submitted to it. Based on our responses, the regulator had sought some more information for clarity and that information was submitted today... there is nothing to be concerned about,” the official said on Wednesday.

He said that the airline has 22 aircraft ready with four in reserve. “As and when we get a go-ahead, we will start them deploying," the official said.

The official said that in the first week, the airline will have 130 flights and then scale it up to 160 flights in the subsequent week.

Go First’s Resolution Professional Shailendra Ajmera on Wednesday told the DGCA that it now plans to start with five daily flights to Leh and three weekly trips to Thoise, instead of the earlier planned eight daily Leh flights and three weekly Thoise flights, Financial Express reported.

Ajmera also told the DGCA that the airline has to process refunds of over Rs 500 crore for flights cancelled till early June and has advance bookings of about Rs 110 crore.

Of the total passenger cancellation amount, Rs 478.8 crore is for bookings through travel agents, and Rs 13.8 crore for those done directly through the company website or mobile app, Ajmera told DGCA. Advance bookings of Rs 106.9 crore were through travel agents and of Rs 0.9 crore directly through the website or app.

Ajmera also added that from now on travel agents will be allowed to book tickets using their money blocked with the airline. Passengers who booked directly on the website or app will get refunds from fresh cash flow the airline will get from new bookings.

Go First, which filed for voluntary insolvency on May 3, has a total liability of Rs 11,463 crore. Of this, bank dues are about Rs 6,521 crore, Rs 1,300 crore has been drawn under the government’s emergency credit line guarantee scheme.  

Besides, the grounder carrier has committed a default of Rs 2,660 crore toward aircraft lessors and Rs 1,202 crore towards its vendors.

On July 10, Resolution Professional Ajmera invited Expressions of Interest (EoI) from the prospective buyers for the airline to expedite the sale process.
The deadline for submitting EoIs is August 9 and the final list of prospective resolution applicants will be declared on August 19, according to a public notice.

(With agency inputs)

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