Go Flight gets DGCA's green signal to resume operations
Troubled airline Go First can finally breathe a sigh of relief. Indian aviation regulator Directorate General of Civil Aviation (DGCA) has given the cash-strapped airline its approval to resume operations. In a notification, DGCA said that upon examination, it has accepted the resumption plan proposed by Go First dated June 28, pending the outcome of writ petitions before the Delhi High Court and NCLT.
Why does this story matter?
Go First has been struggling for a while. Engine troubles forced the company to ground a large number of its aircraft. The company was staring at an uncertain future. That's when Wadia Group decided to go into voluntary insolvency. It was a gamble to revive the airline. And it seems to have paid off. The airline now has a second chance.
DGCA's approval is subject to certain conditions
It is, however, not that easy for Go First. The DGCA has laid down certain conditions for the airline to follow. For starters, it has to fulfill all the necessary regulatory requirements for holding an Air Operator Certificate. It also has to ensure the "airworthiness" of aircraft involved in operations. Additionally, the company has to conduct a satisfactory handling flight before deploying any aircraft.
Go First's resumption plan was amended after DGCA's audit
Go First's resumption plan contains strategies for restarting the airline's operations. According to the initial plan, the company aimed to deploy a fleet of 26 aircraft and carry out 160 daily flights. In its notification, DGCA said the plan was amended on July 15. The amendment was made after a special audit conducted by DGCA at Go First's Mumbai and Delhi facilities.
Go First can resume operations with 15 aircraft, 114 flights
The audit found that Go First does not have adequate pilots and technical staff to carry out its proposed resumption plan. Go First's resolution professional Shailendra Ajmera agreed with DGCA's observations. Go First's revised plan involved 15 aircraft and 114 daily flights. This is what DGCA approved. The company has to inform DGCA in case of any changes that could affect the resumption plan.
Lenders had approved Rs. 400 crore interim funding
Go First can now resume operations "on availability of interim funding and approval of flight schedule," DGCA said. The low-cost carrier's lenders gave an in-principle nod for interim funding to the tune of Rs. 400 crore last month. The airline had to get DGCA's approval to resume flights to receive the money. With DGCA's approval in the bag, it can get funding.
