DGCA orders Go First to stop sale of air tickets with immediate effect

Aviation regulator DGCA on Monday ordered cash-strapped Go First to stop selling air tickets with immediate effect until further instructions.

Directorate General of Civil Aviation asked the airline to "stop booking & sale of tickets directly/indirectly, with immediate effect until further orders".

DGCA issued notice to Go First "for failure to continue operations in safe, efficient and reliable manner".

Post airline's reply within 15 days, DGCA will decide on its licence.

"In view of the sudden cancellation of flights and initiation of corporate insolvency resolution process under IBC by Go Airlines (India) Limited (Go First), DGCA has issued a show cause notice to Go First under the relevant provisions of the Aircraft Rules, 1937, for their failure to continue the operation of the service in a safe, efficient and reliable manner

"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. Further, Go First has been directed to stop booking and sale of tickets directly or indirectly, with immediate effect and until further orders" said DGCA in its notice.

Go First on Monday requested the National Company Law Tribunal 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.

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 Directorate General of Civil Aviation (DGCA) after the Wadia group firm filed its voluntary insolvency resolution plea.

Go First, which has been flying for more than 17 years, has suspended the sale of tickets till May 15.

As many as 28 planes or more than half of the airline's fleet are grounded due to non-supply of engines by Pratt & Whitney (P&W).

With liabilities worth Rs 11,463 crore and a financial crunch, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.

The lessors of the carrier have opposed Go First's plea for an interim moratorium contending that it would have ''harmful and serious consequences''.

The carrier has total liabilities of Rs 11,463 crore to all creditors, including a default of Rs 3,856 crore towards operational creditors. The dues towards aircraft lessors are Rs 2,600 crore.

Besides, Go First is facing two more petitions seeking insolvency proceedings against it.

With inputs from PTI

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