The DGCA on Monday issued a show-cause notice to Wadia Group cash-strapped airline GoFirst for suddenly canceling flights under IBC and initiating the corporate insolvency resolution process. Instructions have also been issued to the airline to stop the sale of tickets till further notice. DGCA said that in view of the sudden cancellation of flights under IBC by GoFirst Airlines and initiation of insolvency resolution process, DGCA has issued a show cause notice to GoFirst under the provisions of the Aircraft Rules, 1937.
Asked to reply in 15 days
The airline has been asked to file its reply within 15 days from the receipt of the show cause notice. Based on the reply of the company, a decision will be taken on continuation of its Air Operators Certificate (AOC). The CEO of the airline said in an interview after the regulator's decision that if the court restrains the lessors from taking back the aircraft, then flights can be started again within 7 days.
Chief Executive Officer Kaushik Khona said on Saturday that if the court starts the insolvency resolution process immediately, we will be able to save the airline 100 percent. Has been continuously cooperating with all our beneficiaries including oil suppliers, service providers and has kept everything in front in a transparent manner.
Registration of 20 more aircraft will be canceled
Go First has requested the National Company Law Tribunal on Monday to give its verdict on its petition soon. The company has said in the petition that the leasers have started canceling the registration of the carrier's aircraft. The tribunal had reserved its order on May 4 after hearing the budget airline's carrier's plea. The lessors have sought cancellation of registration of over 20 aircraft and approached the DGCA after the Wadia Group firm filed an insolvency petition. GoFirst, which has been flying for 17 years, has suspended ticket sales till May 15.
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