After Go First cancelled its flights from May 3-5 and filed an insolvency plea, Civil Aviation Minister Jyotiraditya Scindia on Tuesday said the Government of India has been assisting the airline in every possible manner.
However, he said it is incumbent upon the airline to make alternative travel arrangements for passengers so that inconvenience is minimal.
“Go First has been faced with critical supply chain issues with regard to their engines. The GOI has been assisting the airline in every possible manner. The issue has also been taken up with the stakeholders involved,” Scindia said in a statement.
Since Go First has applied for voluntary insolvency resolution proceedings before NCLT, Sincida said it is prudent to wait for the judicial process to run its course.
“Yet, it is unfortunate that this operational bottleneck has dealt a blow to the airline’s financial position. It has come to our knowledge that the airline has applied to the NCLT. It is prudent to wait for the judicial process to run its course,” he said.
“Meanwhile, the DGCA has issued a notice to the airline on the sudden suspension of flights. It’s incumbent upon the airline to make alternative travel arrangements for passengers, so that inconvenience is minimal,” he added.
The Mumbai-based low-cost airline also stopped taking flight bookings for the next two days.
Go First has filed an application for voluntary insolvency resolution proceedings before NCLT, said CEO Kaushik Khona.
He said that Go First is facing a financial crunch due to a non-supply of engines by P&W that has forced the grounding of 28 planes.
“Go Air is facing a financial crunch due to the non-supply of engines by P&W that has forced the grounding of planes. CEO has filed an application for voluntary insolvency resolution proceedings before NCLT,” the company said in a statement.
DGCA Issues Show-cause Notice to Go First
The DGCA issued a show cause notice to Go First after the airline cancelled fresh bookings.
“No prior intimation has been given to DGCA for such cancellations which is non-compliance with conditions for approval of schedule. Thus Go First has failed to report in writing the cancellations and reasons thereof. Go First has failed to adhere to the approved schedule which would lead to passenger inconvenience thereby violating the provisions of CAR, Section 3, Series M, Part IV. Go First is hereby called upon to show cause as to why suitable action shall not be initiated against the airline for the aforesaid violation. The reply of the airline shall reach this office within 24 hours, failing which the matter would be processed ex-parte,” read the notice.
The aviation regulator also asked Go First to submit its plan of action to operate flights as per the approved schedule from May 5.
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