GoFirst: The regulator of the civil aviation sector, DGCA, has ordered GoFirst to immediately stop booking air tickets through direct or indirect methods. Also, DGCA has issued a notice under the Aircraft Rules 1937 for failure to fly in a safe, regular and reliable manner. DGCA has asked GoFirst to respond to the notice within 15 days.
The DGCA has issued a show cause notice to GoFirst under the AirProft Rules 1937 following GoFirst’s sudden decision to cancel flights and apply to NCLT to declare itself insolvent under IBC. DGCA believes that the airlines have failed to fulfill their role as a reliable service provider.
GoFirst has been asked to respond to the notice within 15 days from the receipt of this notice. Continuation of GoFirst’s Air Operators Certificate will be decided based on the response of the airlines. In such a situation, DGCA has asked GoFirst to stop booking air tickets directly or indirectly till further orders.
GoFirst Airways, which is facing financial crisis, has requested the National Company Law Tribunal to give an early decision on the application filed to declare it bankrupt. Airlines told NCLT that if the decision is not given soon, then the aircraft leasing companies will take back the aircraft. Earlier, the CEO of GoFirst had said that if the NCLT bans taking back the leased aircraft, then the airlines can start flying again in 7 days. The tribunal has reserved its decision on the demand for an interim order to declare GoFirst bankrupt.
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