Go First bankruptcy: DGCA issues notice for non-compliance
The DGCA observed that Go First had failed to report its cancellations and the reasons thereof in writing, leading to passenger inconvenience and violation of statutory provisions.
The Directorate General of Civil Aviation (DGCA) issued a show cause notice to Go First after the airline cancelled fresh bookings from May 3 to 5 without prior intimation.
The DGCA released a statement stating that Go First (formerly GoAir) cancelled flights without informing them beforehand and did not follow the approved schedule, causing inconvenience to passengers and violating the Civil Aviation Requirements (CAR), section 3, series M, part IV.
Meanwhile, the Wadia Group-owned airline is grappling with severe financial difficulties and filed for insolvency with the National Company Law Appellate Tribunal (NCLAT) today.
The DGCA released a statement saying that Go First (formerly Go Air) cancelled flights without informing them beforehand and did not follow the approved schedule, causing inconvenience to passengers and violating CAR, Section 3, Series M, Part IV. This action from the Wadia Group-owned airline comes amidst severe financial difficulties and filing for insolvency proceedings with NCLAT.
"It has come to the notice of DGCA that Go First has cancelled all scheduled flights of May 3 and 4, 2023, respectively. No prior intimation has been given to DGCA for such cancellations, which is non-compliance with conditions for schedule approval," said the DGCA statement.
The aviation regulator added that Go First was required to notify it of the cancellations and the reasons thereof in writing.
On Tuesday, the airline's CEO Kaushik Khona said that the budget carrier had temporarily suspended all domestic and international flights and filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) in Delhi. Khona said the airline had grounded 28 planes, more than half of its fleet, due to the non-supply of engines by Pratt & Whitney (P&W).
"It is an unfortunate decision [filing for voluntary insolvency resolution proceedings], but it had to be done to protect the company's interests," PTI reported Khona as saying. Once the NCLT admits the application, the flights will be restarted, Khona was quoted to have said.
This seems an optimistic view, particularly when industry observers recall the current status after a similar trajectory for Jet Airways.
Figures in this story have been updated