After declaring bankruptcy on May 3, citing its financial woes, the cash-strapped airline ceased operations.
Cash-strapped Although the Directorate General of Civil Aviation (DGCA) gave Go First 30 days to submit a reorganisation or resurrection plan (including fleet, pilots, and maintenance plans) on May 25, the airline is unlikely to resume operations within that time frame.
The directive was issued after Go First responded to the DGCA’s show cause letter from May 8.
After a time of suspension, “Go First has requested that they be allowed to use the moratorium period to prepare a comprehensive restructuring plan for restarting operations and present the same to DGCA for the requisite regulatory approvals before restarting operations,” stated a DGCA official.
Once Go First submits its proposal for reactivation, DGCA will assess it and take any necessary measures, the official said.
After declaring bankruptcy on May 3 due to a severe financial problem, Go First ceased operations.
After the airline failed to begin operating flights as scheduled on May 8, the Indian aviation authority issued a show cause notice demanding an explanation from the company.
It also requested that Go First immediately cease selling airline tickets until additional instructions.
Go First was given until May 24 to reply to the DGCA’s concerns before the DGCA made a final judgement on Go First’s application for an Air Operator Certificate.
The airline promised its workers on May 24 that they would get their entire April paychecks before it resumed operations.
The CEO has promised that April’s pay would be sent into your account before work begins. Go First Vice President-Flight Operations Captain Rajit Ranjan emailed the staff to let them know that from next month, salary checks will be sent within the first week of the month.
In his email to staff, Ranjan gave them reason to believe that Go First will soon restart operations by citing a recent NCLT judgement that allowed the company’s bankruptcy appeal notwithstanding the objections of the aircraft lessors.
SOURCE :- https://www.moneycontrol.com/news/business/companies/go-first-crisis-dgca-grants-30-days-to-airline-to-submit-its-revival-plan-10660421.html