DGCA orders cash-strapped 'Go First' Airways to immediately stop selling tickets

The aviation regulator also issued show cause notice to the airline for their failure to continue operations in a safe, efficient and reliable manner.  

New Delhi: The Directorate General of Civil Aviation (DGCA) on Monday directed crisis-hit Go First to cease selling tickets with immediate effect until further instructions.

The DGCA asked the airline to "stop booking & sale of tickets directly/indirectly, with immediate effect until further orders". The aviation regulator also issued show cause notice to the airline for their failure to continue operations in a safe, efficient, and reliable manner.

After receiving a response from GoFirst by May 24, the DGCA will make a determination regarding Go First's Air Operator Certificate (AOC).

“In view of the sudden cancellation of flights and initiation of the corporate insolvency resolution process under Insolvency and Bankruptcy Code (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,” said a senior DGCA official.

Since May 3, Go First has cancelled all of its flights and appealed with the NCLT to start voluntary insolvency procedures.

On May 8, the halted domestic carrier requested that the National Company Law Tribunal (NCLT) provide an order on its request for a moratorium as soon as possible.

The offer of tickets has been stopped until May 15 by Go First, which has been operating flights for more than 17 years.

Meanwhile, Go First is seeking to raise funds, and owners of the Wadia Group are in talks to either sell a majority stake or exit the company completely. The airline posted its biggest annual loss in fiscal 2022.

Of late, the cash-strapped airline has grounded over half its 61-plane fleet due to recurrent financial issues and the non-supply of engines from American manufacturer Pratt & Whitney, which powers its Airbus A320 Neo planes.

The airline has sued Pratt & Whitney in a US federal court seeking to enforce an arbitral award directing the engine maker to supply the engines as contracted.