Struggling to resume operations, Go First seeks additional funds
By India Today Business Desk: Crisis-hit airline Go First, which is under bankruptcy protection, has sought additional funds from its lenders in order to resume operations, reported news agency Reuters quoting banking sources.
The airline is asking for between Rs 400 crore and Rs 600 crore in additional funds, and lenders are expected to evaluate proposals in the next 48 hours.
Go First plans to resume operations in July and operate 78 daily flights with 22 aircraft, said one of the bankers quoted in the report. An earlier report indicated that the airline planned to resume operations by the end of June.
But on Wednesday, the airline cancelled all flight operations until June 25, citing operational reasons.
Also Read | Crisis-hit Go First struggles to resume operations, cancels flights till June 25
It is worth mentioning that the planned resumption of operations depends on a number of factors, including regulatory approvals.
Funds necessary for revival
The Go First bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank among its creditors, which are owed Rs 6,521 crore in total.
The airline’s financial difficulties have been compounded by the COVID-19 pandemic, which has led to a sharp decline in air travel demand. Go First is one of several Indian airlines that have filed for bankruptcy protection in recent months.
Also Read | Go First crisis: Lenders take full control of airline’s resolution process, says report
If Go First is able to secure the additional funds it needs, it will be a major step towards the airline’s recovery. However, the airline still faces a number of challenges, including regulatory approvals and the need to rebuild its customer base.
Will Go First be able to resume operations?
The future of Go First remains uncertain. The airline has a number of additional challenges to overcome, including securing additional funds, obtaining regulatory approvals, and rebuilding its customer base.
However, if Go First is able to overcome these challenges, it could be a viable airline in the years to come.
Also Read | Not great for civil aviation: Jyotiraditya Scindia reacts to Go First crisis
