New Delhi, May 25 (IANS) The Directorate General of Civil Aviation (DGCA) has given cash-strapped airline Go First 30 days to submit a restructuring or relaunch plan, including on the fleet, pilots and maintenance plans.
The low-cost airline had ceased flying on May 3 and is subject to voluntary insolvency resolution proceedings in the National Company Law Tribunal (NCLT).
The aviation regulator’s order came after the airline submitted its response to the show cause notice issued by the DGCA on May 8.
According to the DGCA official, the airline has asked to be allowed to use the moratorium period to prepare a comprehensive restructuring plan for the restart of operations.
“They will present it to the DGCA for the required regulatory approvals before restarting operations,” the official said.
The DGCA will assess the recovery plan once Go First submits it to determine the next best course of action.
Regarding funds to restart operations, Go Airlines CEO Kaushik Khona previously told IANS that the company has yet to draw the balance of Rs 208 crore from the sanctioned Rs 1,500 crore in under the Emergency Credit Guarantee Scheme (ELCGS).
According to him, the airline needs around Rs 17-18 crore per day for its operations as business partners can provide the necessary items – fuel and others – in cash and on-the-go.
Khona had also said that the airline will soon be able to fly its planes again to be in the air in 7/8 days once the petition is admitted.