Go First Airline, on June 27, yet again announced the cancellation of all its flights until June 30, 2023 due to operational reasons.
On June 26, lenders to Go First, which is under bankruptcy protection, had approved interim funding of $54.9 million to resume operations and restart the airline, two banking sources had said.
The airline was granted bankruptcy protection on May 10. Reuters reported last week that the airline has sought 4 billion-6 billion rupees in additional funds from banks. “This interim funding does not come with collateral, it will be a part of the insolvency cost and will be given priority over other dues,” said one of the bankers.
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Go First plans to operate 78 daily flights with 22 aircraft, as per the company’s revival plan presented to lenders last week.
The low-cost carrier had filed for bankruptcy at the National Company Law Tribunal on May 2, 2023 over mounting losses, which it had attributed to delays in the delivery of Pratt and Whitney engines, resulting in the grounding of half its fleet of aircraft.
The Go First bankruptcy filing listed the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its creditors, to which the airline owes a total of 65.21 billion rupees.
