May 12, 2023: According to the DGCA, based on Go First's response to the warning, the agency will determine whether or not to authorise it to conduct flights. Continue reading to know more!
Go First, a low-cost carrier, received a second warning from the aviation watchdog Directorate General of Civil Aviation (DGCA) on Monday, ordering it to cease booking and selling tickets as of right now and to suspend flights effective May 3.
The DGCA issued a second notice to the cash-strapped airline on Monday for the unexpected flight cancellations and failure to continue flight operations in a reliable manner. "Go First has been directed to stop booking and selling tickets directly or indirectly, with immediate effect and until further orders," the DGCA stated in a statement.
In light of Go Airlines (India) Limited (Go First) abruptly cancelling flights and starting a procedure to resolve its corporate insolvency under the IBC, the DGCA has issued a show-cause notice to Go First in accordance with the relevant sections of the Aircraft Rules, 1937, for their failure to continue operating the service in a safe, effective, and dependable manner.
A show-cause notice is an official document sent to a party in dispute. It provides information about a suspected wrongdoing and offers the receiving person the ability to respond or risk further consequences.
According to the authority, based on Go First's response to the warning, it will evaluate whether it should be allowed to conduct flights. The airline has 15 days to react to the notification, and "further decision on the continuation of their Air Operators Certificate (AOC)will be taken on the basis of the reply submitted by them," according to the statement.
The aviation authority issued the first notice on May 2 after the airline abruptly decided to halt flights for three days beginning on May 3. The airline in response informed the regulator that it had initiated bankruptcy proceedings before the National Company Law Tribunal, and that it would continue to do so through May 15, 2023, while also attempting to reimburse or reschedule for future dates the customers who had already made reservations to fly with them.
In general, the term "insolvency" refers to circumstances in which a debtor is unable to fulfil their obligations. For instance, a struggling business may become insolvent if it can't pay its debts to creditors on time, which frequently results in the filing of a bankruptcy.
