On Tuesday, the airline, Go First, said it has communicated with the government that there is no definite timeline for resuming operations.
In its reply to DGCA's show cause notice, Go First said it has no definite timeline for the resumption of operations yet.
Go First hasn't shared any detailed plans or timelines on resumption of operations in their reply to us, DGCA said in a statement to Business Today.
The National Company Law Appellate TribunalNCLAT on Monday upheld an NCLT order allowing crisis-hit Go First's voluntary insolvency resolution proceedings.
A two-member NCLAT bench asked Go First's Airline Lesors to approach National Company Law Tribunal NCLT for any remedy.
The decision to uphold the order dated May 10, 2023, enabling insolvency is upheld, said Justice Ashok Bhushan, chairperson of the NCLAT.
The direction came on a batch of four petitions filed by aircraft lessors opposing Go First's insolvency proceedings. The lessors own around 22 aircraft operated by the Wadia Group firm, which is presently going through the Corporate Insolvency Resolution Process CIRP.
NCLT had appointed an interim resolution professional IRP to look after Go First's affairs and also suspended its board as part of the insolvency resolution process.
NCLT had put Go First under moratorium, which means that lessors are barred from taking back aircraft and creditors are restrained from taking coercive action.
In the order passed on May 10th, 2023, NCLT had also directed the IRP to keep the airline as a going concern and not to retrench its employees.
With more than 7,000 employees on its roll, the airline is still in the process of reviving.
This was quickly challenged by SMBC Aviation Capital beforeNCLAT within hours of the NCLT order. Later on May 15, other lessors also moved NCLT and the appeals court on May 15 reserved its order.
So far, several lessors have asked airline regulator DGCA for deregistration and repossession of Go First's 45 planes.
Go First stopped flying on May 3 and has suspended operations until May 26.