GoFirst Airlines is undergoing various developments as the airline has got a conditional nod from aviation regulator of India. The airline has shut down operations after it filed for insolvency. Lets have a quick look at what are the recent developments?
Major developments in GoFirst
Indian aviation watchdog Directorate General of Civil Aviation gave a conditional nod to GoFirst Airlines to resume operations with a fleet of 15 aircraft and 114 daily flights.
The airline has some conditions. It will fly some military charter flights to Leh and Thiose Airbase for transportation of military personnels and equipment. The airline won the bid for Ministry of Defense for these flights.
Apart from these, the airline will have to operate check flights for all the aircraft.
Pratt & Whitney soft move
US based aerospace engine manufacturer Pratt and Whitney (P&W) has delivered 2 engines to GoFirst. Delivery of these 2 engines will enable the airline to bring back 1 more aircraft back to operations. After this, the airline will have an operational fleet of 27 aircraft.
The airline is aiming to get 5 more engines by the end of August month. This is because of the direction from Singapore International Arbitration Court (SIAC) to Pratt & Whitney. SIAC ordered P&W to deliver 5 engines every month to GoFirst from August to December.
Pratt & Whitney offers new lease agreement
Engine manufacturer Pratt & Whitney has offered budget airline GoFirst to sign a new and fresh lease agreement. P&W is calling GoFirst to the negotiation table for this new lease agreement. This will include new renegotiated terms and prices for each engine.
Apart from this, the airline is also looking at external funding sources. GoFirst Airlines is reaching out to special-situation financiers such as asset reconstruction companies (ARCs) and distressed debt funds for short term funding.
As of lenders, Bank of Baroda and Central Bank of India have agreed to lend Rs 450 crore to GoFirst.
GoFirst has currently suspended flights till July 25.
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