GoFirst stops ticket booking till May 15, DGCA orders full refund
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New Delhi : The company has banned the sale of tickets till May 15, the second day after filing a voluntary bankruptcy resolution petition in the National Company Law Tribunal (NCLT) on behalf of the cash-strapped low-cost airline GoFirst. In the information given by the company to the Directorate General of Civil Aviation (DGCA), it has been said that it has suspended the sale of tickets till May 15. The airline said it has suspended all flights till May 9.
Petition filed in NCLT
In a statement, the aviation regulator cited the show cause notice issued to the airline and said that GoFirst had informed that they have filed an application under section 10 of the Insolvency and Bankruptcy Code before the NCLT. DGCA said that they have further informed that they have temporarily suspended scheduled flight operations for a period of three days from 3rd May 2023 and will take further action as per the outcome of their application before NCLT.
Refund the money of passengers: DGCA
The DGCA said it has examined the response of GoFirst and issued an order under the prevailing regulations, directing it to process refunds to passengers as per the timelines specifically prescribed in the relevant regulations. During the hearing before the NCLT, the airline sought a direction from the tribunal to provide an interim relief in the form of debt restructuring if the NCLT does not accept the petition today. Go First Airlines Company informs the court that the bank account with the consortium has been frozen. GoFirst said that an insolvency resolution professional (IRP) should be appointed to turn around the airline.
Appeal to stop the forcible action of DGCA
Let us tell you that in its petition filed before the NCLT, the airline has appealed to restrain the aircraft lessors from taking any recovery action as well as restrain the DGCA and suppliers of essential goods and services from coercive action. The appeal also asked the DGCA, the Airports Authority of India (AAI) and the private airport operator not to cancel the departure and parking slots allotted to the airline. The airline also wants fuel suppliers to continue to supply for aircraft operations.
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