The Directorate General of Civil Aviation (DGCA) has sought clarifications and updates from GoFirst, the airline owned by the Wadia Group. As part of its special audit report, the DGCA has completed inspection of the aircraft parked in Goa and Hyderabad.
According to two people in the know, the DGCA has asked for updates and clarifications from the airline as a part of its special audit report. The DGCA has completed the audit, and it has also inspected aircraft parked at Goa and Hyderabad. “It sought clarifications and updates on the company’s current conditions with regards to the personnel, spare parts, salaries payments, update on the CoC funding, refunds and condition of the engines among others,” said the person.
Though the person did not divulge details on the DGCA’s stance on the aircrafts’ condition, he said the aviation watchdog also asked for updates of the aircraft parked at Nagpur, Kochi, and Kannur, among others. Another person said the RP has been given a week to respond to those queries while the airline continues to remain inoperative.
The RP and the CEO of GoFirst did not respond to businesskine’s query. GoFirst, in a public notice, informed customers that it has suspended operations till July 16.
GoFirst has initiated the Expression of Interest (EoI) process to seek potential bidders as part of its ongoing insolvency proceedings. The airline’s resolution professional, Shailendra Ajmera, has set the deadline for bid submissions as August 9. Sources indicate that the Wadia Group, which owns Go First, is expected to participate in the bidding.
In line with the process, a newspaper advertisement was published announcing the last date for the expression of interest as August 9, with the first provisional list of interested parties to be declared on August 19. The advertisement also mentioned that Go First currently employs 4,200 individuals, although the airline’s submission to the National Company Law Tribunal (NCLT) stated a workforce of 7,000.
The advertisement highlighted that Go First operates in the aviation sector and possesses assets across various airports in the country. It further disclosed that the airline generated total revenue of INR 4,183 crores during the fiscal year 2021-22.
The resolution professional overseeing the insolvency process will meticulously monitor the EOIs received by the August 9 deadline and subsequently announce a provisional list of interested parties on August 19.