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This is an archive article published on May 9, 2023

DGCA asks Go First to halt ticket sales; sends show cause notice

The counsels requested the tribunal to take an early decision on its plea, saying that lessors have started deregistering the airline's aircraft.

Go First, DGCA notice, ticket sales, show cause notice to airline, indian express, indian express newsThe flight cancellations were subsequently extended till May 9 and then May 12. The airline had also suspended sale of tickets till May 15. (Express Photo)
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The Directorate General of Civil Aviation (DGCA) on Monday ordered Go First to stop booking and sale of tickets directly or indirectly “with immediate effect and until further orders”.

The regulator also issued a show cause notice to the embattled carrier for its “failure to continue the operation of the service in a safe, efficient and reliable manner”. These actions were taken by the regulator in view of sudden cancellation of flights by the airline and its move of voluntarily filing for insolvency under the Insolvency and bankruptcy Code (IBC).

“The airline operator has been asked to submit their reply within 15 days of the receipt of this notice, and further decision on the continuation of their Air Operators Certificate (AOC) will be taken on the basis of the reply submitted by them,” the regulator said in a statement.

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The AOC is the approval given to operators by the DGCA for undertaking commercial operations. An airline cannot operate without an AOC. On May 2, Go First announced that it was voluntarily approaching the National Company Law Tribunal (NCLT) under the IBC, and was cancelling all its flights for the May 3-5 period.

The flight cancellations were subsequently extended till May 9 and then May 12. The airline had also suspended sale of tickets till May 15.

Meanwhile, the airline has requested the NCLT to take an early decision on its voluntary insolvency resolution plea, saying lessors have started deregistering the carrier’s aircraft.

On May 4, after a hearing, the tribunal had reserved its order on the budget carrier’s petition.

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Senior advocate P Nagesh along with Pranjal Kishore mentioned the matter in the morning before the principal bench of the tribunal headed by President Ramalingam Sudhakar.

The counsels requested the tribunal to take an early decision on its plea, saying that lessors have started deregistering the airline’s aircraft.

The bench agreed to look into Go First’s request. Lessors have sought the deregistration of more than 20 planes and have approached the DGCA after the Wadia group firm filed its voluntary insolvency resolution plea.

With PTI inputs

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