Go First Seeks To Borrow Up To ₹600 Cr To Get Off The Ground Again

Bankrupt airline Go First has approached lenders during a meeting held on Wednesday to request additional funds as the Wadia Group carrier tries to restart operations.

What Happened? Go First is seeking an infusion of funds ranging between ₹400 crore to ₹600 crore, Reuters reported, citing banking sources. Lenders are expected to assess the proposals within the next 48 hours.

The sources revealed that Go First has outlined plans to recommence operations in July. The airline aims to operate 78 daily flights with a fleet of 22 aircraft. However, that will depend on receiving approval from India’s aviation regulator.

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The troubled carrier, which went into bankruptcy protection last month after alleged problems with Pratt & Whitney engines grounded most of its fleet, has already delayed restarting operations several times, cancelling several flights and issuing refunds to customers.

One banker said that the resumption of operations hinges on various factors, including obtaining necessary regulatory clearances. Go First must receive the go-ahead from the Directorate General of Civil Aviation (DGCA) before it can resume flying.

According to the bankruptcy filing, the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank are among the creditors of Go First. The total outstanding amount owed to these creditors stands at ₹6,521 crore.

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