Tag Archives: GoFirst

GoFirst settles dues of Deutsche Bank

GoFirst has settled out of court the loans it owes to Deutsche Bank. Consequently, the German bank has told the airline’s committee of creditors that it intends to withdraw from the group. Although Deutsche Bank confirmed the settlement, it did not disclose the terms.

The bank’s claims against the airline stood at INR13.65 billion Indian rupees (USD164.1 million) in June, although at the time, Go First’s resolution professional was yet to verify that claim. However, reports say the bank provided loans worth USD300 million to Go First’s owners, the Wadia Group, over 2021 – 22. A portion of that funding, USD190 million, was used to create fixed deposits which, in turn, was used as security to help finance Go First, reports Economic Times.

The bank’s claims against Go First, which were unsecured, included INR8.55 billion (USD102.8 million) lent by Deutsche Bank India and INR5.1 billion (USD61.3 million) lent by DB International Asia and the India-based Catalyst Trusteeship. The Economic Times says that of the INR246.41 billion (USD3 billion) in claims filed against Go First, the resolution professional, India’s equivalent of an insolvency administrator, has only verified claims worth INR51.17 billion (USD615.3 million).

While Deutsche Bank may be exiting the Go First insolvency process, a raft of other creditors remain, including three major Indian banks that have claims worth INR37.524 billion (USD451.2 million) verified so far. They include the Bank of Baroda with verified claims of INR17.44 billion (USD210 million), the Central Bank of India with verified claims of INR19.24 billion (USD231.4 million), and the IDBI Bank with verified claims of INR740 million (USD8.9 million). These banks have supported Go First’s planned restart and indicated an in-principle willingness to provide loans up to INR4 billion (USD48.1 million) to finance the airline’s relaunch and short-term costs. However, so far, funding has yet to be provided as the banks grapple with internal rules governing the provision of loans to distressed entities, and uncertainty remains over the ability of a relaunched Go First to retain any of its aircraft. (Source: Economic Times)

Airfares soar up to 89% on key routes for Diwali week

Travelling by air during this Diwali is likely to be an expensive affair. Airfares on key routes across the country for the festival week — between November 10 and November 16 — are already up to 89 per cent vis a vis last year’s Diwali week due to high demand and limited capacity amid Go First’s insolvency and SpiceJet’s financial troubles.The average one-way airfare on the Delhi-Ahmedabad route for the November 10-16 period is INR 5,688, which is 72 per cent higher than in the Diwali week last year (October 21- October 27, 2022), according to data provided by travel website Ixigo. This is for tickets booked more than 80 days before the travel date. Last Diwali, there were about 290 flights per week operating on the Delhi- Ahmedabad route. For this Diwali, airlines are currently scheduled to operate 15 per cent fewer flights on the route, according to airline executives. “Go First used to operate about 42 weekly flights on the Delhi-Ahmedabad route. They are gone. SpiceJet has reduced its services on this route in the past year. It is currently operating about 14 weekly flights.

Other airlines do not have planes to operate more flights on this route,” an airline executive explained. Go First suspended all its flights from May 3 onwards and filed an insolvency application. The Directorate General of Civil Aviation (DGCA) last month approved Go First’s plan to resume flights, subject to the outcome of pending cases and the availability of interim funding. The airline is yet to resume flights. Airfares are also shooting up as demand for air travel — even in a lean season — has significantly shot up this year. “June and July, which are traditionally lean seasons, have recorded higher domestic air traffic this year (12.4 and 12.1 million passengers, respectively) as compared to the peak festival season of October 2022 (11.4 million passengers). Travel demand is likely to escalate further during this year’s Diwali, resulting in higher airfares across key routes. The increase in capacity by year-end may lead to some relief on fares in India,” said Ixigo spokesperson. The average one-way airfare on the Delhi-Srinagar route for the Diwali week this year is INR 7,175, which is 89.11 per cent higher than in the Diwali week last year, according to Ixigo’s data.

For this year’s Diwali, airlines are currently scheduled to operate 33 per cent fewer flights on the Delhi-Srinagar route. “Go First used to operate about 72 flights per week on the Delhi-Srinagar route. No other airline has been able to fill that gap,” an airline official explained. On the Bengaluru- Hyderabad route, the average one-way airfare for the Diwali week this year is INR 1,914, which is 63 per cent more than last year, shows the Ixigo data. This is despite the fact that aviation companies are scheduled to operate about 40 per cent more flights this Diwali. SpiceJet this month is scheduled to operate overall 1,266 flights a week — 41.5 per cent less than August last year, according to aviation analytics firm Cirium’s data. The airline has been finding it difficult to make timely payments to its aircraft lessors. As on August 1, 26 of its total 62 planes were grounded, according to Cirium’s data. SpiceJet earlier this week stated that it plans to revive 25 grounded planes back to service. (Source :The Business Standard)

PM inaugurates Mopa Airport in Goa

Prime Minister Narendra Modi inaugurated the Mopa International Airport in Northern Goa yesterday, named after former state CM, Manohar Parrikar, reports Zee News. The new airport in the region is an attempt to boost air connectivity in the region and is in sync with the government’s aim to boost tourism in Goa.

The new airport has been built with a cost of INR 2,870 crore and is scheduled to begin operations on January 5, 2023. It is to be noted that the foundation stone of the airport was laid by the PM back in November 2016.

The Mopa International Airport will be the second airport in the state and will be operated alongside the Dabolim airport in South Goa. Moreover, the airport’s inauguration gives the state an infrastructural boost and will supplement overall economic development in the state.

The Mopa International airport in Goa has been built with a sustainable infrastructure plan. In addition to other features, it has a solar power plant, green buildings, LED runway lighting, rainwater collection, and a cutting-edge sewage treatment system with recycling capabilities.

Its foundation stone was laid by him in November 2016. This will be the second airport in Goa, the first one being located at Dabolim.

The Mopa International Airport features a variety of best-in-class technology, including 5G-capable IT infrastructure and StabilRoad, Robomatic Hollow precast walls, and 3-D Monolithic Precast buildings. The airport has 14 parking spaces, a location for aircraft night parking, self-baggage drop facilities, a runway large enough to handle the largest aircraft in the world, and cutting-edge, autonomous air navigation systems, among other amenities.

With an expandable saturation capacity of 33 million people per year (MPPA), Phase I of the airport will initially be able to accommodate roughly 4.4 MPPA. The airport will promote the socio-economic growth of the State while meeting the demands of the tourism sector. It has the capacity to act as a significant logistical centre, directly connecting different domestic and foreign sites. The airport will reportedly have connections to numerous types of transportation. Furthermore, IndiGo and GoFirst airlines have already announced their flight operations from the airport.
(Source: Zee News)

GO FIRST announces new direct flights to Kuwait and Muscat from Kochi

In line with its vision to strengthen international connectivity between India and the Middle East, GO FIRST (formerly known as GoAir) announced the commencement of daily direct flights from Kochi to Kuwait and Kochi to Muscat starting 1st June 2022. The inaugural flight departed from Cochin International Airport at 20:15 hours (local time) and arrived at Kuwait International Airport at 23:05 hours (local time).

The new flights to Kuwait and Musact from Kochi will offer connectivity and convenient travel options to blue collar workers/migrant working class flying abroad for employment.

Situated on the western front of Asia, Kuwait is a country in the Middle East that has a lot to offer to travelers. The rich cultural and commercial heritage makes it a must-visit Gulf country. The city is a perfect amalgamation of lively restaurants, pristine beaches, and antiquated museums.