GoFirst: The trouble of the airline company Go First is increasing. The Directorate General of Civil Aviation (DGCA) has asked GoFirst to stop selling further air tickets with immediate effect until further orders.
The Indian aviation regulator has issued a show cause notice to the airline and asked why its license should not be canceled in view of its failure to operate flights.
DGCA has given GoFirst 24 days to respond to the show cause notice. After which the GoFirst Air Operator Certificate decision will be taken by the regulator.
The notice sent by the DGCA to GoFirst has asked why its AOC should not be canceled for failure to continue operating in a safe, efficient and reliable manner.
A senior DGCA official has said that in view of the sudden cancellation of flights by GoFirst under the Insolvency and Bankruptcy Code (IBC) and initiation of the Corporate Insolvency Resolution Process, the DGCA has sought to comply with the relevant provisions of the Aircraft Rules. GoFirst has been issued a show cause notice under the 1937 Act for their failure to continue operating the service in a safe, efficient and reliable manner.
On 8th May, Airlan on its website and online travel ticketing platform like MakeMyTrip etc. Stopped selling tickets on these platforms as well.
GoFirst has canceled all flights since May 3 and simultaneously filed a petition with the NCLT to initiate voluntary bankruptcy proceedings.
The stalled domestic carrier on May 8 asked the National Company Law Tribunal to expedite an order on its plea for a stay.
The airline which is struggling financially, this airline has cited urgency. Because the National Company Law Tribunal had reserved its orders on 4 May.
Go First told NCLT that it has received notice of termination of lessors and has also transferred the matter to DGCA.
When the matter was taken over by the NCLT, the lessees started encroachment. On behalf of the company, the tribunal has been told that we are not being allowed to enter for maintenance work.
A petition was filed on behalf of GoFirst before the tribunal on 2 May. The petition sought a direction to restrain Aircraft Stone from taking any recovery action and restrain the DGCA and suppliers of essential goods and services from initiating any adverse action.
Further requested that DGCA, AAI and private airport operators should not cancel any departure and parking slot allotted to the company.
Not only this, the airline also wants to have a supplier for the fuel. They must continue to supply the aircraft to operations without terminating existing contractual arrangements.
With a liability of Rs 11,463 crore and a financial crisis, the Wadia Group-owned airline has sought voluntary insolvency resolution process as well as an interim moratorium on financial liability.
DGCA stopped Go First from selling air tickets know the whole matter
The trouble of the airline company Go First is increasing. The Directorate General of Civil Aviation (DGCA) has asked GoFirst to stop selling further air tickets with immediate effect until further orders.
