Revival on the horizon: Govt eyes Go First’s return to the skies soon | Latest News India

The government is hopeful that Go First will resume flights in the next 10 days, increasing flight capacity in the peak summer month of June. “We are positive about the revival of the airline by the end of this month,” an official in the civil aviation ministry said, asking not to be identified. “The picture will be clear in the coming eight to 10 days.”

The government’s expectation is based on unofficial assurances from the new management after the airline’s application for insolvency was accepted on May 10 by the National Company Law Tribunal (NCLT). The airline is now run by Abhilash Lal, Interim Resolution Professional appointed by NCLT.

Go First’s plea for voluntary insolvency resolution proceedings was filed on May 2 and it suspended its operations on May 3 . It has since continued to extend this suspension; operations currently stand suspended till May 26.

On Friday, some media claimed that Go First could resume operations from May 27, citing an email to pilots informing them about a refresher course. The reports added that the airline would operate with a handful of aircraft to destinations like Delhi, Bengalure and Ahmedabad.

Civil aviation minister Jyotiraditya Scindia on Thursday said that the government wants resumption of flights “as soon as possible.”

36 aircraft of Indigo and 24 aircraft belonging to Go First have been grounded due to challenges faced by the maintenance repair and overhaul (MROs) concerning hardware and supply chain constraints for over a year, which forced the regulator to step in. While IndiGo (that has more than 300 planes in its fleet as compared to Go First that has a fleet size of 57), has two engine suppliers; P&W and CFM, all the Go First aircraft are powered with P&W engines that led to crisis.

The DGCA, in a letter to the engine maker had suggested that an additional to the existing three P&W’s maintenance facility in Asia (located at Singapore, China and Japan), would help in cutting down the time and cost for transportation of engines to Pratt & Whitney MROs. However, the regulator’s step did not prove to be effective.

Scindia added that the government had impressed upon Pratt & Whitney that India needs to have the planes up and running.

“We cannot have multiple planes from one engine manufacturer on the ground in India, which is the case today unfortunately.”

Industry watchers believe that Go First’s return to the skies may not bring immediate respite since the resumption of flights will be on a smaller scale. The airline commanded a market share of 7% and had a fleet of 27 aircraft, when it ceased operations.

“About 30,000 daily passengers are affected by the airline’s crisis. The airline will hopefully restart its operations but on a limited scale. This is because the cash will be used judiciously. But the airline will try to sell their tickets in (popular) tourist sectors that it dominates like Delhi- Srinagar, Delhi- Leh and Goa,” said Ajay Awtaney, head of LiveFromALounge.com, an aviation focused website.

Meanwhile, the government has also asked other airlines to not raise fares to exorbitant levels on account of Go First’s flight suspension. The suspension of flights has led to increased airfares on key routes. Commenting on this, a second aviation ministry official said: “The ministry in any way cannot restrict the airlines. However, we have asked them to monitor the airfares.”

Airfares on sectors like Delhi- Srinagar, Delhi- Pune and Delhi- Leh that were Go First’s best selling routes have seen a surge.

“May is a leaner month as compared to June. While the airfares have gone up due to the issues with Go First not operating flights for over 15 days now, the situation will worsen if it doesn’t return to skies by the end of this month,” the second official added on condition of anonymity.

“Go First’s situation has led to 8% capacity being pulled out and that has significantly affected airfares as airlines are free to charge whatever they can get away with and travellers simply have to live with it. The only way airfares can be brought under control is if the government brings aviation fuel under GST. This is a long pending demand. The second important way to control airfares is to construct low-cost infrastructure — airports to specifically cater to low-cost airlines and smaller cities,” Ajay Prakash, president, Travel Agents Federation of India (TAFI) said.