Go First suspends ticket sales till May 15; ready why

Go First, a cash-strapped airline, has told the Directorate General of Civil Aviation that they has paused ticket sales until May 15 after filing for voluntary insolvency before the National Company Law Tribunal (NCLT) a few days ago. According to the airline, all flights have been cancelled until May 9.

The aviation regulator cited the show-cause notice sent to the airline in a statement and stated that Go First had hinted that they had submitted an application to the NCLT under Section 10 of the Insolvency and Bankruptcy Code.

“They have further informed us that they have temporarily suspended scheduled plane operations for three days, effective May 3, 2023, and shall take further action according to the outcome of their application before the NCLT,” the DGCA stated.

According to the DGCA, it has reviewed Go First’s answer and issued an order instructing them to handle passenger refunds in accordance with the timelines expressly stated in the applicable regulation.

During the hearing, the airline also asked the NCLT for a directive that, if the NCLT does not accept the plea today, an ad-interim relief will be issued in the form of an interim moratorium. 

The company court is notified by Go First Airlines that the consortium’s bank account has been suspended. 

Go First recommended appointing an Insolvency Resolution Professional (IRP) to oversee the airline’s rehabilitation.

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