Go First insolvency: DGCA to conduct audit before allowing flight resumption

Aviation regulator DGCA will conduct an audit of Go First's preparedness before approving resumption of flights by the crisis-hit carrier, according to a communication.

Cash-strapped Go First stopped flying from May 3 and is undergoing voluntary insolvency resolution proceedings.

On Tuesday, a senior official at the Directorate General of Civil Aviation (DGCA) said the airline has submitted its response to the regulator's show cause notice indicating that it is working on the details of a plan to resume flights at the earliest.

In a communication to the staff on Tuesday, the airline said, "DGCA will be conducting an audit to check our preparedness in the coming days. Once approved by the regulator, we would be soon commencing operations".

The government has been very supportive and has asked the airline to commence operations as soon as possible, it added.

Besides, the communication, sent out on Tuesday night to the staff, said the CEO has assured that salaries for the month of April will be credited to their accounts before the commencement of operations.

"Further, from the coming month, the salary will be paid in the 1st week of every month," it added.

The communication was sent out by Go First's Head of Operations Rajit Ranjan.

On May 8, DGCA issued a show cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner. The airline has submitted its reply to the show cause notice.

Go First, on May 2, announced filing the plea for voluntary insolvency resolution proceedings as well as suspension of flights, initially for two days -- May 3 and 4.

At that time also, DGCA had issued a show cause notice to Go First for cancelling flights for May 3 and 4 "without any prior intimation".

The airline has cancelled all its flights till May 26.

On Monday, the National Company Law Appellate Tribunal (NCLAT) upheld NCLT's decision to admit Go First's plea for voluntary insolvency resolution proceedings.

The ruling had come on petitions filed by four lessors opposing the insolvency resolution proceedings of the airline.