Go First has access to Rs 300 cr, will start ops at the earliest: Exec

Wadias infused Rs 290 cr in the airline in April. Under the Emergency Credit Line Guarantee Scheme, the airline can draw an equivalent amount in loans from banks

Go First has access to around Rs 300 crore of funds and expects to start operations as soon as possible.

The Wadia-group airline's plea for insolvency was admitted on May 10 and Abhilash Pal was appointed as interim resolution professional.

Pal has already invited claims from creditors which will be received by May 23. A business plan too is being prepared.

"Efforts are on to restart operations as soon as possible," said an airline executive.

Go First stopped operations on May 2 due to a cash crunch resulting from defective engines and grounded aircraft.

The promoter Wadia group infused Rs 290 crore in the airline in the last week of April. Under the government’s emergency credit line guarantee scheme the airline can draw an equivalent amount in loans from banks.

"While a Rs 82 crore loan has been received under ECLGS, the balance Rs 208 crore has been sanctioned. If the committee of creditors approves, this amount can be drawn. There are certain receivables from charter flights undertaken by the airline and also refunds due to airline. So around Rs 300 crore will be available to the airline to restart operations" the executive added.

Go First is also taking a legal view on the leases that have been terminated by lessors. The airline's CEO, Kaushik Khona, has interacted with airline's employees including pilots. "The pilots are keen to continue working with us. We've informed them there will be no salary cut and salary will be paid once the business plan is approved by the committee of creditors," the executive added.