Go First: The cash stripped airline has received an interim fund of Rs 425 crore from its creditors in order to help revive the airline. The operations of the airline have been suspended from May 3 and the approved fund will restart the operations. Shailendra Ajmera, airline’s resolution professional proposed the interim fund. Subsequently the committee of creditors approved the funding at a meeting held earlier this week. With the approval of the interim fund Go First has received a major relief after a period of shut down and the airline is hoping to resume operations in July.
Plan to resume operations
After resumption of its flight operations in July, the airline plans to operate 78 daily flights with a fleet 22 aircrafts. The airline expects to receive the approved fund within the next few weeks. As for the process of restarting operations, the final call will be made by Directorate General of Civil Aviation (DGCA). The grounding of Go First Airlines put significant stress on fares of the routes where it operated. The renewal of flight operations has laid down expectations for normalization of fares.
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Accumulated debt
The Go First bankruptcy filing lists include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank as its major creditors with total credit rolled out valued at 6,521 crore. Civil Aviation Minister Jyotiraditya Scindia had stated Go First crisis is not good sign for civil aviation. “As far the Civil Aviation Ministry is concerned, we are steadfast in helping the airline with fundamental issues that they have. DGCA is waiting for Go First to submit its plan for the resumption of flights,” he said last month few days after operations were suspended.
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