Go First, the crisis-hit airline currently undergoing voluntary insolvency resolution proceedings, has informed its staff that the Directorate General of Civil Aviation (DGCA) will conduct an audit to assess the airline’s readiness before granting approval for flight resumption. The head of operations at Go First conveyed this information to the employees. The cash-strapped airline ceased operations on May 3, and since then, efforts have been underway to initiate the insolvency resolution process.
On Tuesday, a senior official from DGCA confirmed that Go First has responded to the regulator’s show cause notice, indicating its efforts to devise a plan for resuming flights at the earliest. In an internal communication, the airline informed its staff about the upcoming audit by DGCA, stating that once the regulator grants approval, operations would commence soon. The government has shown tremendous support and has urged the airline to resume operations expeditiously, as mentioned in the communication by Go First’s Head of Operations, Rajit Ranjan.
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Regarding the resumption of flights by Go First, Civil Aviation Minister Jyotiraditya Scindia stated that the ministry has not yet received any communication from the airline. However, once they receive the plan for restarting flights, the DGCA will evaluate the safety protocols before making a decision.
In addition to the audit update, Go First’s communication to its staff assured that salaries for April will be credited to their accounts before operations commence. Furthermore, starting from the following month, salaries will be disbursed in the first week.
On May 8, DGCA issued a show cause notice to Go First, citing its failure to operate services in a safe and reliable manner, in accordance with the Aircraft Rules, 1937. The airline has submitted a response to the notice.
Go First initially announced the suspension of flights for two days, May 3 and 4, along with the initiation of voluntary insolvency resolution proceedings. However, DGCA issued a show cause notice for the sudden cancellation of flights without prior intimation. Currently, all flights have been canceled until May 26.
On Monday, the National Company Law Appellate Tribunal (NCLAT) upheld the decision of the National Company Law Tribunal (NCLT) to admit Go First’s plea for voluntary insolvency resolution proceedings. This ruling came in response to petitions filed by four lessors who opposed the airline’s insolvency resolution proceedings.
