Go First eyes more cash, leaner fleet

livemint.com:

MUMBAI : Go Airlines India Ltd, the operator of bankrupt Go First airline, aims to secure higher interim financing of ₹600-700 crore from banks and start with fewer flights than earlier planned in its revised strategy to resume operations, two people directly aware of the plan said. “We have revised our original plan.

We may resume flight operations with 10-15 aircraft but go for higher interim financing from the creditors," one of the two people said on condition of anonymity. Earlier, the carrier envisaged restarting flight operations with 26 aircraft through an interim financing of ₹400-500 crore from its lenders.

According to the people cited above, Go First will be better able to navigate the relaunch process if the number of aircraft is lower and the “cash in hand" is higher. Go First owes at least ₹6,521 crore to financial creditors, including Central Bank of India Ltd, Bank of Baroda Ltd, IDBI Bank Ltd, Axis Bank Ltd, and Deutsche Bank AG.

It had also defaulted on payments to its operational creditors, including aircraft lessors. Pratt & Whitney (P&W), the engine supplier and service provider for Go First, has agreed to provide 4-5 engines and allied services every month after the Singapore International Arbitration Centre (SIAC) directed the US-based aircraft engine maker to do so.

“We (Go First) will get this arbitration award enforced through an appeal at the Delaware court, even though P&W has given us a commitment to supply the aircraft engines and provide us with all the required maintenance services during the flight resumption process," said the first person. The two persons said the new plan to access higher interim financing from banks is essentially aimed at enabling Go First to handle the relaunch