Uncertainty over planes stalls Go First plans to raise finance

livemint.com:

Mint that the airline’s RP Shailendra Ajmera was asked by the Committee of Creditors (CoC) to approach banks with a revival plan and raise funds amounting to ₹450 crore. The CoC had also approved that the RP-led management can also approach the banks, who are part of the committee. Ajmera, however, has not been able to raise funds despite approvals from the aviation regulator Directorate General of Civil Aviation due to a Delhi high court order that gives lessors permission to inspect the aircraft.

The aviation regulator approved Go First’s plan to restart operations with 15 aircraft and 114 daily flights, subject to certain conditions. “Since there is no guarantee on aircraft availability due to that order, the airline’s RP has not been able to raise funds, thus, delaying the resumption process. It is delayed and may not happen, if the aircraft are not made available," added the people mentioned above.

Messages sent to Ajmera did not elicit any response till the time of going to print. Go First, owned by the Wadia Group, filed for insolvency with the National Company Law Tribunal (NCLT) on 2 May attributing its financial struggles to faulty engines provided by Pratt and Whitney. It was admitted by NCLT on 10 May.

If Go First fails to resume operations after moving to NCLT, it will be the second airline after Jet Airways that will not resume operations. Jet, which had shut operations in April 2019, is struggling to relaunch operations despite getting new promoters in Jalan Kalrock Consortium. The issue of aircraft unavailability for Go First arose after a single judge bench of the Delhi high court in July granted aircraft leasing companies to access the aircraft leased to Go First for inspections and maintenance work.