Indian low-cost carrier Go First may be about to stage a comeback as it has secured funding to the tune of 425 INR Crore (or US$ 52 million), according to reports appeared in the Indian media.
A consortium of financial institutions which includes the Central Bank of India, Bank of Baroda, Deutsche Bank and IDBI Bank has approved a restructuring plan and the injection of fresh capital in the troubled airline.
Go First suspended all flights in May 2023 after filing for insolvency.
Back then, the airline blamed technical problems with the Pratt & Whitney engines, which have forced it to ground a significant share of its fleet at times. These accusations were rejected by the American engine maker, who pointed out that Go First had a history of missed payments.
The funding package comes short of the sum originally requested (around US$122 million) but appears to be enough to restart operations.
Following the approval of this financial rescue plan, which comes short of the US$120 million sum originally requested, Go First may be able to restart operations as soon as this July, albeit limitedly, with only 22 aircraft, less than half its full fleet.
Go First problems happen in the context of a growing airline industry in India, which has seen massive new aircraft orders of around 1,000 aircraft combined, by competitors IndiGo and Air India at the recent Paris Air Show.