NEW DELHI: The cash-strapped Go First Airlines has got the aviation sector regulator’ the Directorate General of Civil Aviation (DGCA) approval to resume operations if it could meet certain conditions. The DGCA riders included getting interim funding and approval of its flight schedule. 

Go First, founded as GoAir in November 2005 by Jeh Wadia, son of Indian industrialist Nusli Wadia of the Bombay Dyeing conglomerate as a wholly owned subsidiary of the Wadia Group plunged into a financial crisis, stopped flying operations in May this year.  It was and was granted bankruptcy protection and admitted for insolvency resolution. The crisis was apparently sparked by what it called 'faulty' Pratt & Whitney engines that grounded about half its 54 Airbus A320neos. Although the Raytheon-owned engine maker had said that the claims were without merit. 

The DGCA gave its nod for the airline’s resumption plan dated June 28 and added that the airline as a going concern may commence flight operations, subject to conditions' with this Go First may resume scheduled flight operations on the availability of interim funding and approval of flights scheduled by DGCA.

In an approval letter addressed to Go First’s bankruptcy resolution professional (RP) Shailendra Ajmera, the DGCA has said that it has accepted the proposed resumption plan dated June 28, subject to the outcome of writ petitions by aircraft lessors, pending before the National Company Law Tribunal (NCLT) and the Delhi High Court.

Following interim funding approval by Go First’s lenders, Ajmera presented a flight resumption plan to the DGCA on On June 28. The Committee of Creditors (CoC) of the airlines' financial creditors like the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank

Meanwhile, the final list of prospective resolution applicants will be declared on August 19 to take over the battered airlines as the Expressions of Interest (EoIs) from potential bidders have been received and the due diligence has been done by the RP. 

The DGCA order also says that the RP will have to submit the proposed flight schedule, commensurate with the available resources in terms of airworthy aircraft, qualified pilots, cabin crew, AMEs (aircraft maintenance engineers), flight dispatchers, etc, for consideration of DGCA after making required arrangement. The regulator has clearly specified that scheduled flight operations can be commenced only after the availability of required interim funding and approval of the flight schedule, and the airline will be permitted to sell tickets only after the plan was approved.