Go First (GOW, Mumbai International) has told India's Directorate General of Civil Aviation (DGCA) that it will cost INR2 billion rupees (USD24.2 million) to restart operations using 22 aircraft and running 152 daily flights, according to a Business Standard report.
Unnamed Go First executives have briefed that outlet, saying that the airline had submitted its restart plan to the DGCA and retained the resources to operate up to 26 aircraft. Before it stopped flying, the airline had 54 aircraft in its fleet, albeit many parked, and operated around 200 daily flights. Go First reportedly retains 340 pilots, 680 cabin crew, and 530 engineers on its payroll. Go First suspended all flights on May 3, owing banks INR65.21 billion (USD789.3 million), lessors INR26.6 billion (USD322 million), and suppliers INR12.02 billion (USD145.4 million).
Global consulting firm Alvarez and Marsal are handling Go First's insolvency process and have told the DGCA that the airline requires INR2 billion in funding to restart, adding that the carrier is in talks with lenders about securing this. There is also an unspecified amount of undrawn credit available, and INR4 billion (USD48.4 million) is accessible via the Indian government's emergency credit line guarantee scheme (ECLGS). Lenders have yet to agree to release any restart funds, hesitant because the DGCA has yet to approve any restart and requires a "well-defined and solid" business plan. Alvarez and Marsal told the DGCA that it would cost INR120 million (USD1.45 million) daily to restart flights in a so-called cash-and-carry mode. Initial funding will cover unpaid salaries for April and May and bring vendor payments up to date.
The DGCA has yet to decide on Go First's restart plans. The airline continues to push back its tentative restart date and cancelling blocks of flights. At the time of writing, the airline has cancelled flights until June 9. Separately, travel agents in India, with fresh memories of the Jet Airways (JAI, Mumbai International) refund debacle, are threatening to refuse to sell tickets on relaunched Go First flights unless the airline clarifies its refund and credit process, according to a report in India's Economic Times. They say clients caught out by the grounding have "no end in sight" regarding their refunds. Go First's rolling series of flight cancellation advisories say passengers can expect a full refund "shortly."
Meanwhile, the latest Airbus order and delivery data reveals that Go First has trimmed their outstanding order with the manufacturer by 16 aircraft. Data released earlier this week shows that the order for one hundred and forty-four A320-200Ns was reduced to 128, with Go First receiving no deliveries in May.
