MC Exclusive: Shailendra Ajmera to submit revised Go First revival plan to DCGA today

Go First plans to start operations on July 1 across 78 routes using around 22 aircraft.

Go First’s resolution professional Shailendra Ajmera will present the revised blueprint for reviving the beleaguered airline to the Directorate General of Civil Aviation (DGCA) on June 28, multiple sources aware of the development said.

"The new revival plan of Go First, which has been approved by the Committee of Creditors (CoC), will be presented to the DGCA by Shailendra Ajmera on Wednesday (June 28)," a government official said.

He added that following the presentation by Ajmera, the DGCA is expected to start the inspection of Go First's fleet, which is likely to take around a week.

Similarly, another official said that if the DGCA is satisfied with the new revival plan, it will assign officers to check the airworthiness of Go First's aircraft, following which it will lift the ban on Go First booking tickets.

"The DGCA will inspect the airworthiness of all 22 aircraft Go First proposes to restart operation with, following which the airline will be allowed to book tickets again," a second government official said.

An executive from Go First told Moneycontrol that the airline plans to start operations three to four days after the DGCA lets it book tickets again.

"There is a massive gap in the sectors where Go First plans to restart operations. We will look to start flying just three to four days after we get approval from the DGCA to book tickets," the executive said.

Go First plans to start operations on July 1 across 78 routes using around 22 aircraft.

Moneycontrol did not receive an immediate response from Shailendra Ajmera of EY, Go First, or the CoC.

The cash-strapped airline announced on June 27 that its scheduled flight operations would remain cancelled until June 30 due to operational reasons.

Earlier this week, the beleaguered airline's lenders granted approval for interim funding of about Rs 400 crore, marking a key step in the ongoing efforts to keep the struggling airline afloat.

The CoC, which includes the Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank, approved the request for additional funding on Saturday (June 24) night.

Go First had knocked on the lenders’ doors for survival capital, promising to get back to operational normalcy at the earliest.

Go First owes Rs 6,521 crore to its lenders. The Central Bank of India has the highest exposure at Rs 1,987 crore, followed by the Bank of Baroda at Rs 1,430 crore, Deutsche Bank at Rs 1,320 crore, and IDBI Bank at Rs 58 crore, Acuite Ratings and Research said in a January 19 report.

To oversee the insolvency process, the CoC of Go First appointed Shailendra Ajmera as the resolution professional (RP).

Ajmera has been entrusted with the task of formulating a revival plan, which will be submitted to the DGCA for review.

Earlier this month, the Wadia Group was looking to raise funds to restart Go First as soon as possible and had approached lenders to borrow up to Rs 225 crore, Moneycontrol had reported.

Lenders to the cash-strapped airlines have said that they are open to providing new loans in order to revive their operations once a clear resolution plan is in place.

An insolvent company can raise funds to remain operational, as sanctioned by an interim RP. The sanctioned limit of funds can be raised in the future if lenders agree.

On May 2, Go First announced that it had filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi.

The announcement was made by the airline’s Chief Executive Officer (CEO), Kaushik Khona, shortly after the Wadia Group-owned carrier said it would temporarily suspend flight operations on May 3 and 4 due to a "severe funds crunch".