DGCA orders Go First to stop selling air tickets with immediate effect

Go First has cancelled all flights since May 3 and moved a plea with the NCLT to begin voluntary insolvency proceedings.

The Directorate General of Civil Aviation (DGCA) on May 8 asked bankrupt airline Go First to stop selling any more air tickets with immediate effect until further orders.

The Indian aviation regulator has issued a show cause notice to the airline questioning why its licence should not be cancelled in view of its failure to operate flights.

The DGCA has given GoFirst till May 24 to respond after which a decision will be taken by the regulator on Go First's Air Operator Certificate.

The DGCA in its notice to Go First asked the airline why its AOC should not be revoked over "failure to continue ops in safe, efficient & reliable manner".

“In view of the sudden cancellation of flights and initiation of corporate insolvency resolution process under Insolvency and Bankruptcy Code (IBC) by Go Airlines (India) Limited (Go First), 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,” said a senior DGCA official.

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The airline had on May 8 stopped the sale of tickets on its website and also on online travel platforms like MakeMyTrip, Yatra, etc.

Go First has cancelled all flights since May 3 and moved a plea with the NCLT to begin voluntary insolvency proceedings.

The stalled domestic carrier on May 8 asked the National Company Law Tribunal (NCLT) to expedite an order on its plea for a moratorium.

The cash-strapped airline has cited urgency as the tribunal had on May 4 reserved its order on the issue.

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Go First has informed the NCLT that it has received notices from lessors for termination, and has also moved the Directorate General of Civil Aviation (DGCA) in this matter.

“Lessors are beginning to take possession when NCLT is seized of the case. We are not being allowed access for maintenance work,” the company has told the tribunal.

Go First, in its petition filed before the tribunal on May 2, sought directions to restrain aircraft lessors from taking any recovery action as well as restrain aviation watchdog DGCA and suppliers of essential goods and services from initiating adverse actions.

Another request is that the DGCA, Airports Authority of India (AAI) and private airport operators should not cancel any departure and parking slots allotted to the company.

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The airline also wants fuel suppliers to continue supply for aircraft operations and not terminate the present contractual arrangements.

With liabilities of Rs 11,463 crore and a financial crunch, the Wadia group-owned airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on financial obligations.

After hearing the plea on May 4, the National Company Law Tribunal (NCLT) reserved its order.