It’s been over a month since Indian low-cost carrier Go First suspended operations. Amid all the media and public scrutiny in the last few weeks, Go First has been dealing with several internal challenges as it hangs on by a thread. But the airline is fighting hard to resume flights and start the long-drawn process of winning back public trust.

Approval sought

When Go First filed for bankruptcy last month, it was almost written off as another big casualty of Indian aviation. Its pilots started looking for jobs at rival carriers, lessors closed in to reclaim aircraft, and the Indian regulator, the DGCA, issued a show-cause notice to explain the next step.

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But the budget carrier has proven more resilient than anticipated. On May 5th, just a little over a month after it ceased operations, Go First sought DCGA’s approval to restart operations with 22 airplanes for the next five months. Restarting at a smaller scale is the only option for Go First, as half of its fleet is grounded due to the ongoing engine issue with Pratt & Whitney and also its precarious financial position.

The airline has submitted its plans until November and is preparing to restart operations with military charter flights followed by commercial passenger flights. Go First’s CEO Kaushik Khona wrote to the DGCA,

“Request for early resumption of operations so that at least we can start charter movement for the defence ministry … and we simultaneously start selling inventory so that customer confidence can be restored…”

Refunds pile up

Meanwhile, the carrier has further pushed its flight suspension until June 9th, which means it is staring at a massive pile of refunds that must be issued to all the affected passengers. But the airline maintains that it will not be able to process the refunds until the government allows it to restart new bookings.

In his written statement to the DGCA, Khona said that the airline has already credited the funds to the payment gateway, but those will start getting processed only when funds from new bookings start flowing in. The management also factored in other essential payments, such as lease rental and MRO services, and said these would resolve after operations resume.

The way forward

While Go First’s problem with its A320neo engines will likely take a while to resolve, for its immediate future, it is trying to convince the DGCA that it has enough funds for flight resumption.

The airline says it still has access to the millions in funding received through the government’s emergency credit line guarantee scheme. So far, this seems to be the only argument the carrier can rely on because creditors are waiting for the DGCA to give its nod before parting with any money.

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The airline has stated that it will need around $1.5 million daily to run operations, and while the government funding and recent cash infusion from promoters may support operations in the short run, the DGCA needs to be convinced of the carrier’s long-term plan of obtaining enough resources to keep its pilots and cabin crew satisfied.

The road ahead for Go First is not quite smooth, but if the DGCA approves its plan and the banks agree to additional funding, it might just make a comeback soon,

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