New Delhi: Low-cost carrier Go First, which earlier this week filed for insolvency, has informed the Directorate General of Civil Aviation (DGCA) that it has suspended its flights till May 15, while the aviation regulator has ordered it to process refunds to passengers as per existing regulations.
“Pursuant to the Show Cause Notice issued by DGCA to Ms. Go First dated 27 May 2023, Go First has sent their response wherein they have intimated that an application under Section 10 of the IBC (Insolvency and Bankruptcy Code, 2016) has been filed by them before the NCLT,” the DGCA said in a statement issued Thursday.
The aviation regulator added that the airline has also intimated that it has temporarily suspended scheduled flight operations for a period of three days effective 3 May and will take further course of action as per the outcome of its application before the National Company Law Tribunal (NCLT).
“In addition, Go First has intimated that they have suspended sale of their flights till 15 May 2023 and are working to refund or reschedule for future dates, the passengers already booked to fly with them,” the DGCA said.
The regulator also said that it had examined the airline’s response and issued an order under the prevailing regulations, directing Go First to process refunds to passengers “as per the timelines specifically stipulated in the relevant regulation”.
“DGGA is committed to minimising passenger inconvenience in view of the abrupt decision by Go First to suspend their scheduled operations without any prior intimation,” read the statement.
Go First, the Wadia Group-owned airline, filed for voluntary insolvency proceedings with the NCLT Tuesday, blaming US-based engine manufacturer Pratt & Whitney (P&W) for its financial problems.
P&W in an emailed official statement Wednesday said it was “complying with the March 2023 (Singapore International Arbitration Centre) arbitration ruling related to Go First”.
(Edited by Amrtansh Arora)
Also Read: Go First crisis could drive up airfares, be ‘silver lining’ for rival airlines