According to state minister of civil aviation Gen V K Singh (Retd), the Directorate General of Civil Aviation (DGCA) has received requests from lessors to deregister a total of 54 aircraft that were leased to Go First.
The DGCA’s processing of the applications is contingent on how the cases before the National Company Law Tribunal, Delhi, and the High Court of Delhi turn out.
Go First, a Mumbai-based airline that ceased operations on May 3, has cancelled all of its flights through July 25 while going through an insolvency resolution procedure.
On Friday, the DGCA announced that it had authorized Go First’s proposal to resume operations with 15 aircraft and 114 daily flights, subject to a number of requirements, including the availability of the necessary emergency finance.
The airline’s resume plan, which calls for operating 15 aircraft and 114 daily flights, has been examined and approved, according to an announcement from the Directorate General of Civil Aviation (DGCA).
“The acceptance is subject to the outcome of the writ petitions/applications pending before the Hon’ble High Court of Delhi & Hon’ble NCLT, Delhi,” it stated.
As part of the airline’s protracted insolvency, Go Airlines (India) Ltd has so far received claims totaling 240 billion rupees ($2.9 billion) from operational and financial creditors, according to Reuters.
The procedure complies with legal standards, which give every creditor a right to payment and recourse by submitting claims if a business is bankrupt. The resolution specialist will investigate the validity of the claims when they are filed.
According to a banker with a state-run bank who has exposure to Go Airlines, “Claims from the lenders are around 50 billion rupees, while lessors’ claims amount to 180 billion rupees so far,” after a meeting of the committee of creditors on Friday.
According to the email, Go First airline won’t be able to accept reservations for its flights until the DGCA has approved its flight schedule.
On June 28, the airline’s Resolution Professional (RP) sent the restart plan to DGCA, who then performed a special examination of the carrier’s Mumbai and Delhi facilities.
In order to speed up the sale process, Go First Resolution Professional invited expressions of interest (EOI) from potential owners for the airline on July 10.
A public announcement states that the EoI submission deadline is August 9 and that the final list of prospective resolution applicants will be released on August 19.
