Go First crisis: DGCA issues show-cause notice to airline, also asks it to stop bookings, sales of tickets

The Directorate General of Civil Aviation (DGCA) has issued a show-cause notice to crisis-hit airline Go First in view of the sudden cancellation of flights and initiation of the corporate insolvency resolution process under IBC, ZEE Business reported citing sources. The airline regulator has issued the notice under the relevant provisions of the Aircraft Rules, 1937, for Go First's failure to continue the operation of the service in a safe, efficient and reliable manner.

Go First has been asked to submit their reply within 15 days of the receipt of this notice, and further decision on the continuation of their Air Operators Certificate (AOC) will be taken on the basis of the reply submitted by them. Further, Go First has been directed to stop booking and sale of tickets directly or indirectly, with immediate effect and until further orders, the report added.

In another development, the lessors of Go First have also requested the DGCA to deregister and export 13 more aircraft from India. With the new request, the total of number of aircraft under request for deregistrtion is 33.  

"Further, Go First has been directed to stop booking and the sale of tickets directly or indirectly, with immediate effect and until further orders," the DGCA said.

Go First cancelled all flights until May 12 due to operational reasons, the airline said on Friday.

"We regret to inform you that due to operational reasons, Go First flights scheduled till May 12, 2023 have been cancelled. We apologise for the inconvenience caused by the flight cancellations. A full refund will be issued to the original mode of payment shortly. We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can," said Go First in a statement.

Earlier, the civil aviation regulator, the Directorate General of Civil Aviation (DGCA), examined the response of Go First and issued an order to the carrier to process their refunds to passengers.

In a statement, DGCA said that Go First has intimated that they have suspended the sale of their flights till May 15, 2023, and are working to refund or reschedule for future dates, the passengers already booked to fly with them.

The beleaguered Wadia Group-led airlines, Go First, on Thursday pleaded to the National Company Law Tribunal (NCLT) for an interim moratorium after facing an acute cash crunch.

The airline has also sought direction to appoint an insolvency resolution process (IRP) for the betterment of Go First.

The NCLT, after the hearing, reserved its order on Go Airlines' plea. 

(With inputs from ANI)