DGCA Asks Go First To Stop Selling Tickets
The beleaguered carrier filed for voluntary insolvency citing fund crunch last week.
India’s civil aviation regulator has asked Go First to stop selling air tickets immediately, days after the beleaguered carrier filed for voluntary insolvency.
In view of the sudden cancellation of flights and initiation of corporate insolvency resolution process under Insolvency and Bankruptcy Code by Go Airlines (India) Limited, DGCA has issued a show-cause notice to Go First under the relevant provisions of the Aircraft Rules, 1937, for their failure to continue the operation of the service in a safe, efficient and reliable manner, according to the regulator’s statement.
The airline operator has been asked to respond within 15 days of receiving the notice. Any further decision on the continuation of their Air Operators Certificate will be taken on the basis of the reply submitted by them, the Directorate General of Civil Aviation said.
Go First temporarily suspended flights last week due to a severe fund crunch, Chief Executive Officer Kaushik Khona had said.
The carrier has grounded more than half of its fleet due to non-supply of engines by Pratt & Whitney. The has resulted in a fund crunch, Khona had said.
The Wadia Group-owned budget carrier intends to continue operations with a smaller fleet and has cited bankruptcy proceedings a way of protecting the remaining assets.
But the airline has extended the suspension of operations from May 3-5 initially till May 9 and then May 12. The DGCA's order may worsen the carrier's chances of staying a going concern.
If the aviation regulator decides to discontinue the air operators certificate, the likelihood of a comeback would get delayed.