Go First saga: SpiceJet to revive 25 grounded aircraft, mobilises Rs 400 cr

After Go First Airline declared bankruptcy, Indian carrier SpiceJet announced on Wednesday that it is reviving its plan to put 25 planes on the ground. It said in a statement that the recovery funds will be drawn from the Center’s Emergency Credit Line Guarantee (ECLGS) Scheme and cash entitlement improvement.

The airline said it has already mobilized around Rs 400 crore to bring its ground fleet back to the air, boosting its overhead line.

Ajay Singh, Chairman and Managing Director of SpiceJet, said, “We are working meticulously to get our grounded fleet back in service in the air again soon. The majority of the ECLGS funding the airline receives will be used for the same purpose, which will help us take advantage of and make the most of the peak season.” Next to travel.

On Tuesday, Go First Airline filed for voluntary bankruptcy settlement in National Company Law Court (NCLT) and canceled its May 3, 4 and 5 flights.

Go First, which is owned by Wadia Group, owes financial creditors Rs 6,521 crore. As of April 30, Go First Air had not defaulted on any of these payments, it said in the filing, the news agency reported. Reuters.

“Nevertheless, given the company’s current financial situation, a default by the company to financial creditors would be imminent,” the application said.

The deposit lists the Central Bank of India, Bank of Baroda, IDBI Bank, Axis Bank and Deutsche Bank among Go First’s financial creditors.

The filing shows that the total liability of the airline to all creditors is Rs 11,463 crore. This includes dues to banks, financial institutions, sellers and aircraft lessors.

Go First said, in its filing, that the “ever-increasing number of engine failures supplied by Pratt & Whitney’s International Aero Engines” resulted in the grounding of 25 new A320s.

US engine maker P&W responded that Go First has a history of missing financial deadlines, but that it (P&W) will continue to meet its obligations to other airlines.