Domestic budget carrier Go First on May 2 announced that it has filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi.
The crisis-hit airline has cancelled all their scheduled flights for May 3 and 4 "without any prior intimation", the Directorate General of Civil Aviation (DGCA) said in a statement.
Minister of Civil Aviation, Jyotiraditya Scindia, in an official statement said, "Go First has been faced with critical supply chain issues with regard to their engines. The GOI has been assisting the airline in every possible manner. The issue has also been taken up with the stakeholders involved."
He added that it is unfortunate that this operational bottleneck has dealt a blow to the airline’s financial position and that it is prudent for the judicial process to run its due course following the NCLT application.
Meanwhile, the DGCA has issued a notice to the airline on the sudden suspension of flights.
"Since Go First has failed to adhere to the approved schedule leading to passenger inconvenience, this is non-compliance with the condition for approval of the schedule. The airline has been called upon to show cause as to why suitable action should not be initiated against the airline for the aforesaid violation," it said.
Go First has been asked to submit its response to the DGCA within 24 hours in addition to its plan of action to operate flights as per the approved schedule from May 5.
Also Read: Go First insolvency: What does it mean for Indian aviation?
Go First, which has been flying for more than 17 years, carried 29.11 lakh domestic passengers in the first quarter of this year and its market share during this period was 7.8 per cent.
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