Go First crisis: DGCA asks airline to process refund to passengers; all flights cancelled till May 15

The DGCA’s statement comes after the Wadia Group-owned airline filed a voluntary insolvency petition citing a severe cash crunch. The airline in a statement later said, "There will be no sale of tickets till May 15. Airline working on refunding or rescheduling already-booked tickets". 

The Directorate General of Civil Aviation (DGCA) instructed GoFirst, a cash-strapped airline, to compensate customers who had bought tickets for cancelled or suspended flights on Thursday. The DGCA's announcement comes after the Wadia Group-owned airline filed for voluntary insolvency, claiming a serious liquidity shortage.

"DGCA has examined the response of Go First and has issued an order under the prevailing regulations directing them to process the refunds to passengers as per the timelines specifically stipulated in the relevant regulation," it added.

The civil aviation authority had already served the airline with a show cause letter, inquiring about its unexpected decision to cease operations. While announcing its bankruptcy, Go First stated that it had temporarily suspended flights until May 5, 2023, to determine its next course of action based on the NCLT hearing.

Go First, on the other hand, has announced that it has paused the sale of airline tickets until May 15. Given the airline's uncertain future, the DGCA asked the company to process refunds for passengers who had bought tickets for travel on a future date.

The DGCA stated that it is dedicated to minimising passenger disturbance in light of Go First's unexpected decision to halt planned operations without prior notice.

The Wadia group-owned airline has also filed a petition with the National Company Law Tribunal, seeking several interim orders, such as preventing lessors from taking back aircraft and preventing the DGCA from taking any adverse action against the airline.