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Go First on Wednesday announced that it has extended the suspension of its flights till June 25, 2023, due to operational reasons. This comes two days after its previous announcement, when the crisis-struck airline said it has cancelled its flights till Thursday, i.e., June 22.
The Wadia Group-owned airline, which is currently undergoing insolvency proceedings, stopped flying on May 3. Go First filed for voluntary insolvency proceeding before the Delhi bench of the National Company Law Tribunal (NCLT) on May 2 and its plea was admitted by the tribunal on May 10.
According to media reports, the airline’s committee of creditors (CoC) will meet today to review Go First’s plan to resume operations and consider its funding requirements. The Directorate General of Civil Aviation (DGCA), in May, asked the embattled airline to submit a flight resumption plan by June, and Go First, earlier in June, also submitted its 6-month revival plan to the aviation regulator.
Earlier this week, The Indian Express reported that banks are planning to conduct a forensic audit of the accounts of the domestic airline to assess if there was any diversion of funds.
Go First Airlines’ total outstanding debt to lenders, including Bank of Baroda, Central Bank of India, IDBI Bank and Deutsche Bank, stood at Rs 6,521 crore, as of April 28, 2023.
