New Delhi: Go First airline has been facing financial crisis. The budget carrier has put on hold all flight operations till May 28. A notification to this effect has been issued by the airline.
Apart from this, the airline company was working on providing quick refund to passengers who had booked flight tickets. Previously, GoFirst had canceled flights till May 26. The decision of Go First came at at a time when Directorate General of Civil Aviation (DGCA) has alloted the airline 30 days time to come up with the revival plan. The DGCA had sought information from the airline regarding the fleet of aircraft that was operational, what were the maintenance arrangements, the availability of pilots and other personnel, the working capital and others.
The DGCA has also issued a directive to the airline to come up with the details as well as status of arrangements with its lessors or vendors. The DGCA will be monitoring the revival plan submitted by Go First.
Go First had filed a petition before the National Company Law Tribunal (NCLT) on May 2 for declaring the airline insolvent. Go First plea was accepted by NLCT. On the other hand, four lenders of Go First went to NCLAT against the decision of the airline.
Also read: Go First: Aircraft lessor moves Delhi High Court seeking directions to take back its leased plane
On May 10, the NCLT had allowed the voluntary insolvency resolution plea by Go First. On May 22, the Delhi-based principal bench of NCLT, while admittig the plea of Go First, had initiated voluntary insolvency resolution proceedings, and appointed an interim resolution professional (IRP) to suspend the company's board.
On the other, several lessors have approached aviation regulator for deregistration and repossession of Go First's 45 planes.
