Indian low-cost carrier Go First, formerly known as Go Air, had ceased its operations temporarily on 3 May, 2023.
The airline for bankruptcy, wherein it cited alleged problems with engine supply from the manufacturer Pratt & Whitney was the main reason for its financial woes.
Ever since the airline stopped its operations for three days, things have gone haywire for the airline; from aircraft lessors filing to take back their aircraft, to the Indian NCLT granting them immunity from repossession.
Positive news…
Now there seems to be some positive news coming from the airline – the new management has submitted a resolution plan and for the first time DGCA has decided to conduct an audit on the airline before giving it permission to start operations.
The news of the airline suspending its operation took the industry by surprise as there were no outward signs of any financial stress. The airline was still paying its lessors and was paying all its EMI on time.
The Indian aviation watchdog Directorate General of Civil Aviation (DGCA) has announced that they have received a resolution plan from Go First.
The DGCA said would give all the necessary approvals only after the revival of the airline’s operations and facilities at its bases in national capital New Delhi and in the financial capital of Mumbai.
DGCA audits
These audits by the Indian aviation regulator will be conducted between 4 July and 6 July, 2023.
“The special audit to be conducted from July 4 to 6 shall be focused on the safety-related aspects and continued compliance of the requirements to hold an Air Operator Certificate, as well as on physical verification of the arrangements made for the resumption of flight operations,” the official said in a statement to Telegraph India.
The airline recently got its in-principal approval of Rs. 425 crores as it seeks funds to restart its operations. The airline is expected to re-start its operations with 23-25 aircraft.
Though things might seem hopeful for now, there are still a lot of hurdles the airline has to negotiate in-order to actually sustain itself.
If and when Go First starts its operations, it will become the sole airline in the country to get back on its feet after being grounded, as no major airline once grounded has ever able to restart to present date.
Monsoon season
Another hurdle might also be the season in which the airline is opting to restart its operations, as currently monsoon season is going on in the country, and major airlines like IndiGo curtail their operations and reduce the number of flights as a result.
A clear example of this will the deep discounted sales going on in the country by airlines like Air India Express and Vistara, dubbing it as “Monsoon Sale.
At this time, turning a profit may be a huge task for the airline, and to add to that, additional woes will be the refunds which are not processed well before the airline stopped its operations; passengers and even travel agents have their money stuck with the airline.
