Budget airline Go First is set to resume flights on May 24 according to internal sources.
Plans
It has developed a business plan to resume operations with 23 aircraft, although on a smaller scale than earlier.
The airline has 27 aircraft which were operating till 2 May.
It has 51 and 37 departure slots at the main airports of Delhi and Mumbai.
There is a plan to resume operation as early as possible but it will be with a truncated schedule,” said a person aware of the development.
The airline has access to 51 departure slots at Delhi’s main airport and 37 at Mumbai’s main airport, but its initial schedule will be reduced.
Cooperating with Govt.
It has been in talks with the Indian government about its plans to resume flights and will seek permission to resume bookings following a meeting on May 11.
It has also prepared a resumption plan to submit to the Directorate General of Civil Aviation (DGCA) that outlines the number of aircraft it will operate and the destinations it will serve.
Go First recently filed for insolvency and the National Company Law Tribunal accepted the company’s application for a voluntary insolvency resolution process on May 10.
The current management which will now be superseded by a court appointed resolution professional of consultancy firm Alvarez & Marsal will hold a meeting tomorrow following which it will approach the government to resume bookings.
Show-cause notice
The DGCA has criticized the airline for its failure to deliver efficient and dependable services.
It had directed the airline to immediately stop ticket sales and issued a show-cause notice for its failure to provide efficient and reliable services.
“After the meeting with resolution professionals the airline will submit a resumption plan to DGCA which will include the total number of aircraft and the destinations it intends to operate,” sources said.
Despite this, the court order prohibits lessors from pursuing pending dues or terminating aircraft lease agreements and airports from canceling the airline’s slots.
The deregistration requests filed by lessors for 46 aircraft have also been declared invalid.
CEO’s statement
Go First’s CEO, Kaushik Khona, has described the court’s decision as a “historic and landmark judgment”, and said that the airline is looking to resume flights as soon as possible.
It is also a perfect example “in the context of revival of a viable business before it becomes unviable,” airline’s CEO Kaushik Khona said, adding that they are looking to resume as soon as possible.
Airfares at all time high
According to aviation analytics firm Cirium, Go First previously operated a significant number of flights to popular leisure destinations such as Srinagar, Leh, and Goa.
However, following the suspension of flights by Go First during the summer travel season, airfares to these destinations have experienced a substantial increase.
The airline could take longer to issue ticket refunds to customers in the wake of its deepening financial crisis.
Refunds
While Go First said it would issue refunds to customers who had already booked tickets, a report suggests that the airline may take at least a couple of weeks before it could start the process.
Go First would have to make refunds to the tune of Rs 450 crore to Rs 500 crore.
On top of that, Go First has a total liability of over Rs 11,000.
It is expected to request the National Company Law Tribunal (NCLT) and Directorate General of Civil Aviation (DGCA) for extended time for issuing refunds as it plans to raise necessary funds.
Go First’s promoters may look to raise around Rs 200 crore for the refunds as well as to pay all its employees.
