Bankrupt: Cash-strapped Go First is hoping to resume its operations by June end, India Today has reported. However, the beleaguered airline’s future plans depend on DGCA’s approval.
DGCA or the Director General of Civil Aviation regulates civil aviation in India.
In May 2023, Go First announced it was cutting back on its operations. This led to a surge in airfares on busy routes like Srinagar and Leh.
A Bloomberg report has indicated that Go First plans to resume 94% of its daily flights while restoring its operations.
The airline’s revival plans include starting 154 flights, which is lesser than the 167 flights it operated earlier. The airline management hopes its revival plan will be approved by the DGCA in the next two weeks. Go First’s flights are suspended until June 19.
Sources in the know tell that the airline will stop its flights to “less profitable” routes like Lucknow, Patna, Varanasi and Ranchi. Go First will however restore flights to high-fare destinations like Srinagar and Leh.
Engine issues
According to Livemint, the airline paused its operations in May due to recurrent engine issues leading to severe losses. Go First gets its engines from Pratt and Whitney.
The same report says that the DGCA issued a notice to Go First on May 8 “seeking an explanation for their inability to run operations within 15 days.” Consequently, the regulator barred the airline from taking fresh bookings from customers.
Several changes in management
In a related development, the Committee of Creditors (CoC) has taken full control of the beleaguered airline.
The Economic Times reported that “The committee of creditors (CoC) has replaced key bankruptcy professionals, who were appointed by the airline early, to take the process forward.”
Some more changes are due in Go First’s management structure.
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