DGCA has asked the company to refund the money for canceled flights.Image Credit source: File Photo
Budget Airlines GoFirst has declared itself bankrupt and is awaiting the NCLT decision for an official stamp on it. Meanwhile, the company had earlier canceled all its flights for 3 days i.e. from 3 to 5 May. Now its date has increased to May 9. On the other hand, the aviation regulator Directorate General of Civil Aviation (DGCA) has asked the company to refund the money for canceled flights.
GoFirst has issued a statement saying that due to operational reasons, it has canceled all its flights till May 9. While replying to the DGCA’s show cause notice, the company has informed that it has also stopped booking of air tickets till May 15. Meanwhile, on the refund order of DGCA, the company says that it will soon work to return the money to the people.
Due to operational reasons, Go First flights until 9th May 2023 are cancelled: Go First
— ANI (@ANI)
Waiting for NCLT decision
Before extending the flight cancellation date, GoFirst had said that an insolvency resolution professional (IRP) should be appointed to resolve the airline’s crisis. At the same time, the decision is awaited on the application made in NCLT to ‘declare bankruptcy’ of the company.
The company hopes that if its bankruptcy petition is not accepted on Wednesday, then NCLT will get relief from interim stop (moratorium) to make payments etc. Meanwhile, the company has informed the NCLT that the bank accounts of the company group have been frozen.
Go First said that an Insolvency Resolution Professional (IRP) should be appointed for the turnaround of the airline.
Go First further sought a direction from the NCLT that an ad-interim relief be provided in the form of interim moratorium if NCLT doesn’t admit the plea today.
— ANI (@ANI)
Attempt to remove the problems of DGCA
Aviation regulator DGCA had asked the company ‘reason’ for suddenly canceling flights on 2 May. On this, the company informed the DGCA about its ‘bankruptcy’. On this, DGCA has said that it has assessed the reply of the company. With this, he has instructed the company to refund the money for the air ticket.
Not only this, DGCA is trying to reduce the problems faced by passengers due to sudden stoppage of GoFirst operation. GoFirst has canceled its flights without any prior notice.
DGCA has examined the response of Go First and has issued an order under the prevailing regulations directing them to process the refunds to passengers as per the timelines specifically stipulated in the relevant regulation: DGCA
— ANI (@ANI)