Image Source : AP DGCA orders Go First to stop selling air tickets with immediate effect
The Directorate General of Civil Aviation on Monday ordered Crisis-hit airline Go First to stop selling air tickets with immediate effect until further instructions.
Go First requested an early decision on its voluntary insolvency resolution plea on Monday, claiming that lessors have begun deregistering the carrier’s aircraft.
The tribunal reserved its decision regarding the budget carrier’s petition on May 4, following a hearing.
The matter was brought up in the morning in front of the principal bench of the tribunal, which was headed by President Ramalingam Sudhakar, by senior attorney P Nagesh and Pranjal Kishore.
The counsels requested the tribunal to take an early choice on its plea, saying that lessors have begun deregistering the carrier’s airplane.
The bench consented to investigate Go First’s request.
After the Wadia group company filed its voluntary insolvency resolution plea, lessors approached the Directorate General of Civil Aviation (DGCA) and sought the deregistration of more than 20 planes.
Go First, which has been flying for over 17 years, has suspended the offer of tickets till May 15.
Because Pratt & Whitney (P&W) hasn’t been able to provide the airline with engines, as many as 28 planes, or more than half of the fleet, are grounded.
The airline has requested voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations due to its financial crunch and liabilities totaling Rs 11,463 crore.
The lessors of the transporter have gone against Go First’s request for an in-between time ban fighting that it would have “harmful and serious consequences”.
The carrier owes Rs 11,463 crore to all creditors, including Rs 3,856 crore to operational creditors for default.
Rs 2,600 crore is owed to aircraft lessors.
In addition, Go First is the subject of two additional petitions seeking insolvency proceedings.
Also Read | Go First cancels all flights till May 12 after filling for bankruptcy
Also Read | DGCA asks Go First, which has now cancelled flights till May 15, to refund passengers
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