Cash-strapped Go First stops ticket sales till May 15, DGCA orders full refunds
Days after it filed for voluntary insolvency before the National Company Law Tribunal (NCLT), cash-strapped airline Go First has informed the Directorate General of Civil Aviation that it has suspended the sale of tickets till May 15. The airline said it has suspended all flights till May 9.
In a statement, the aviation regulator referred to the showcause notice issued to the airline, and said that Go First had intimated that they have filed an application under section 10 of the Insolvency and Bankruptcy Code before the NCLT.
“They have further intimated that they have temporarily suspended scheduled flight operations for a period of three days effective 3rd May 2023 and shall take further course of action as per the outcome of their application before the NCLT”, the DGCA said.
The DGCA said it has examined the response of Go First and issued an order under the prevailing regulations directing them to process the refunds to passengers as per the timelines specifically stipulated in the relevant regulation.
During the hearing before the NCLT, The airline further sought a direction from the tribunal that an ad-interim relief be provided in the form of interim moratorium if the NCLT doesn’t admit the plea today. Go First Airlines informs the company court that the Bank account with the consortium is frozen. Go First said that an Insolvency Resolution Professional (IRP) should be appointed for the turnaround of the airline.
