Go First has been in the news for quite some time. The low-cost airline in India had recently cancelled its flights with an assurance of refund to the passengers of these flights. However, there was no sign of any refund—instead, credit notes were sent via email. Recently, the airline had even filed for bankruptcy. But now, it is hoping to return to Indian skies by restarting flights.
Go First Hoping To Restart Flights
Go First was granted bankruptcy protection on May 10 by the National Company Law Tribunal (NCLT)’s New Delhi court. According to a Money Control report, it is anticipated that none of Go First’s aircraft would be taken by lessors, allowing the airline to resume operations in two weeks at the earliest.
Moreover, Go First is expecting Abhilash Lal of Alvarez & Marsal will assist in negotiating a settlement between the lessors and the airline that will enable Go First to resume operations. He was appointed by the NCLT on May 10 as the interim resolution specialist.
The aim is to contact the Ministry of Civil Aviation and Directorate General of Civil Aviation to commence operations after the resolution specialist meets with Go First’s top executives and staff in a few days. With around 20 aircraft operating 1,200 flights a week, the airline aims to restart operations.
Also Read: Go First Passengers, Get In Line With Credit Notes As There Are No Refunds For Cancelled Flights
GoFirst has been able to hold onto its aircraft and airport parking slots thanks to the decision of bankruptcy protection. Lessors and vendors have also been prevented from collecting past-due fees as a result of the NCLT’s ruling.
Bankruptcy Of The Airline
According to the airline CEO Kaushik Khona, since November, the airline has spent about Rs 200 crore per month. It had no choice except to file for insolvency before the NCLT because it was no longer able to fund it. He added that to restart operations and achieve a profit, Go First requires at least 20 aircraft.
The engine manufacturer, whom the airline holds responsible for its demise, is being sued for $ 1.1 billion in damages. In the past three years, they have already surpassed 20,000 aircraft on ground (AOG) days, losing about $55,000 each day.
Also Read: Amidst Bankruptcy, Go First Further Cancels Flights Until May 09; Here Are The Updates
This means that the maximum amount of compensation, or loss, that he may recover from Pratt & Whitney alone, is $1.1 billion.
Cover Image Courtesy: Go First/ Facebook