DGCA Orders GoFirst To Stop Selling Tickets With Immediate Effect, Issues Show Cause To Airline

The DGCA has issued a show cause notice to the airline for their failure to continue operations in a safe, efficient and reliable manner

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

Source : Getty

The Directorate General of Civil Aviation (DGCA) has asked crisis-hit GoFirst to stop selling any more air tickets with immediate effect until further orders, as reported by the PTI. The aviation regulator has issued a show cause notice to the airline for their failure to continue operations in a safe, efficient and reliable manner and asked why its licence should not be revoked 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 GoFirst's Air Operator Certificate. The DGCA in its notice to GoFirst asked the airline why its AOC should not be revoked over "failure to continue ops in safe, efficient & reliable manner".

Crisis-hit Go First last week announced the cancellation of all its flights until May 12, 2023, "due to operational reasons". The airline, which has been flying for more than 17 years, has also suspended the sale of tickets till May 15.

Meanwhile, Go Airlines, which went under citing Pratt & Whitney engine failures, is optimistic about resuming flights within seven days if the bankruptcy court restrains lessors from taking back its aircraft, reported by Bloomberg. Its Chief Executive Officer (CEO) Kaushik Khona said has enough funds to sustain operations on a cash-and-carry model for about 10 days. The airline is also seeking to request for an outstanding emergency credit it is eligible under the government’s programme to offer life-support to pandemic-hit industries, Khona said.

"We will hundred percent be able to save the airline” if the court starts the insolvency resolution process “immediately,” said Khona. “All our stakeholders, including oil suppliers, service providers are aligned to the fact that we have been continuously cooperating and transparent with them."

Go First, filed for insolvency protection in the NCLT, Delhi, on Tuesday after half of its Airbus SE A320neo fleet were grounded with engine snags, setting the airline back by Rs 108 billion ($1.3 billion) in lost revenue and additional expenses.

The NCLT bench is yet to deliver its final order after it heard the case on Thursday, however, lessors such as Dublin’s GY Aviation Lease, SMBC Aviation Capital, and Pembroke Aircraft Leasing started moving in to take back possession of at least 20 Airbus jets.