To collect additional money and continue operations with fewer planes, Go First
Go Air had previously anticipated starting its operations with 26 aircraft and securing Rs 400–500 crore from its lenders.
According to Mint, Go Airlines India Ltd, the company that runs Go First Airlines, hopes to raise between Rs 600 and Rs 700 crore and launch its services with fewer flights than initially anticipated.
"We've changed our initial strategy. A person with knowledge of the changes told Mint, "We may restart flight operations with 10 to 15 aircraft but want greater interim funding from the creditors.
Previously, Go Air planned to begin operations with 26 aircraft and obtain $400–$500 million from its financiers. The airline is currently thinking of resuming its operations with fewer planes while yet holding onto some capital.
Go First has borrowed money from its creditors, including Central Bank of India Ltd, Bank of Baroda Ltd, IDBI Bank Ltd, and Axis Bank Ltd, totaling around Rs 6,521 crore.
According to the article, Pratt & Whitney, an engine supplier, has agreed to give Go Air 4-5 engines and related services on a monthly basis after being ordered to do so by the Singapore International Arbitration Centre (SIAC).
According to the individuals described above, the current proposal to get more funding intends to restart aircraft operations with improved infrastructure, ensure prompt payment of the new lease rentals, and improve remuneration for pilots, crew, and other workers.
According to the article, the airline must make sure there are adequate pilots since the Directorate General of Civil Aviation (DGCA) has requested this.
In May 2023, Go First filed for the start of insolvency procedures as the airline battled with engine problems that had grounded a significant portion of its fleet.
Go Air's market share fell from 11% in November 2019 to 6.9% in March 2023 as the consequence of aircraft grounding.
