MC Exclusive: Go First looking at three fleet-size options to restart operations

Go First's plans

The National Company Law Appellate Tribunal (NCLAT) is expected to pass its order on May 22 on petitions filed by three aircraft lessors against Go First's voluntary insolvency resolution proceedings and the decision to place a moratorium on the airline's fleet.

ALSO READ: Assets worth Rs 1,500 crore stuck with Go First after moratorium, aircraft lessor tells NCLAT

Interim resolution professional Abhilash Lal of Alvarez & Marsal, who was appointed by the National Company Law Tribunal on May 10 to oversee the company’s operations during the proceedings, has approached Delhi airport to resume flights using some of Go First's slots, another person said.

Flight Plan

One option for Go First is to restart operations with seven planes as a charter service between Delhi and Leh, Delhi and Srinagar, and Delhi and Thoise air force base in Jammu & Kashmir.

If the airline can restart commercial operations with 15 planes, it will target the Delhi-Leh, Delhi-Srinagar, Delhi-Goa, Delhi-Lucknow, and Delhi-Jaipur routes, officials said.

Go First's plans

With 20 aircraft, it will resume flights on the Delhi-Leh, Delhi-Srinagar, Delhi-Goa, Delhi-Lucknow, Delhi-Jaipur, Delhi-Mumbai and Delhi-Chennai routes.

The airline operated 27 aircraft until May 2 and held key slots at the New Delhi and Mumbai airports. Go First said it cancelled flights until May 26 due to financial losses resulting from faulty Pratt & Whitney engines that have grounded half its fleet as it waits for them to be repaired or replaced.

The NCLT's decision to grant Go First bankruptcy protection has helped the budget carrier keep its aircraft and airport parking slots and restrained lessors and vendors from recovering pending dues or reclaiming assets.

On May 12, aircraft lessors argued that the cash-strapped airline was using the insolvency proceedings to hold on to aircraft that it does not own.

SMBC Aviation Capital, an aircraft leasing company in Dublin, questioned the rationale of Go First filing for voluntary insolvency despite having 26 functional aircraft and accepting bookings for future dates.

SMBC Aviation claimed it has unpaid dues of Rs 700-800 crore from Go First. SMBC also said the NCLT did not provide it with an opportunity to present its side and admitted Go First's plea for insolvency without ascertaining the entire situation.