GoFirst Resolution Professional Shailendra Ajmera has submitted an 11-month revival plan to the Directorate General of Civil Aviation (DGCA).
The plan includes resumption of operations from 22 airports and acquisition of 27 engine spares from Pratt & Whitney. The airline’s dispute arbitration award with engine manufacturer PW is expected to be announced next week, said officials.
In a bid to ensure financial stability, the insolvency-bound airline’s RP has informed lenders about conducting a ‘sensitivity analysis’ to address potential revenue shortfalls. An additional ₹200 crore may be required, bringing the total to ₹630 crore. Furthermore, following a safety audit by the DGCA, airline officials will meet airport officials and travel agents to settle outstanding dues of up to ₹400 crore. The next COC meeting is scheduled for next week, a lender told businessline.
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Another source said: “The RP has presented the plan as per which the airline plans to restart operations from July 1. It has an 11- month plan till 2024. It will restart operations from 22 airports and gradually scale up. For the same, the airline will restart operations with 22 aircraft and four aircraft on standby.”
Currently, it has engines for the said aircraft. However, the life span of those engines is short. In its insolvency documents, GoFirst had pinned the blame on PW for its inability to provide spare engines. The Wadia-owned company dragged PW to arbitration. The airline had also claimed that PW was directed to provide 10 engines every month. However, sources said that PW was not on schedule. On the other hand, GoFirst too has yet to pay for the said spares.
In this context, a senior official said, “As per schedule, the airline is likely to get 27 spare engines in phases. However, it may not be enough. Meanwhile, the arbitration award is likely to come next week.”
Safety audit
A Ministry source said the DGCA will conduct a safety audit of each aircraft.
. As of April 28, the airlines’ dues to creditors were at over ₹11,000 crore. businessline had reported that GoFirst had sought additional funding. Of this , the lenders have in principle agreed to provide interim funding of ₹430 crore.
A senior banking official further said: “The RP has said that it will do a continuous ‘sensitivity analysis’. Which means that it will monitor the passenger load factor on an ongoing basis. If the load factor is not up to the mark, they will require an additional funding of ₹200 crore, taking the total to ₹630 crore.”
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Meanwhile the airline has put up a notice for hiring senior cabin crew. This comes even as the airline has suspended operations for another week till July 6.