Go First; Stopped selling tickets
Go First, a low-cost airline operating in India has been ordered to stop selling tickets with immediate effect by the Directorate General of Civil Aviation (DGCA). The airline disregarded the regulator’s rules regarding refunding travelers for canceled flights, so a decision was made.
Due to the COVID-19 pandemic‘s detrimental effects on the aviation industry, Go First has been experiencing financial difficulties. The airline needed to downsize its fleet size and staff to survive.
The company was given an immediate stop-sale order by the aviation safety regulator on May 8 and was also given a show-cause notice before the airline’s license to operate commercial flights was ultimately revoked.
The DGCA also issued a notice of cause to the airline for failing to continue running its service in a dependable, safe, and efficient way.
Go First has been given 15 days to react, and all subsequent choices about the validity of their Air Operators Certificate will be based on that response.
The airline had previously varied the cancellation of flights. Flight cancellations were first unexpectedly announced on May 2 for a three-day window from May 3 until May 5, which was later extended until May 9. Later, the cancellations were postponed until May 12.
Go First has been given 15 days to address the safety concerns after the DGCA ordered Go First to cease offering tickets immediately.
After correcting the safety issues, the airline has been ordered to submit an annual compliance report to the DGCA.
The airline is also seeking a decision from the NCLT (National Company Law Tribunal) regarding its insolvency claim and an interim halt to prevent lessors from seizing its aircraft due to unpaid debts.
Due to a serious cash shortage, Go First filed for bankruptcy. It accused US aviation company Pratt & Whitney of producing “faulty” engines, forcing the company to ground more than half its fleet. According to its filings for bankruptcy, it has obligations worth more than Rs 11,000 crore.
In light of delays from engine manufacturer Pratt & Whitney in sending spares and maintaining what the airline has referred to as under-performing engines, 28 out of 54 aircraft are currently grounded.
According to DGCA, the airline suffered a loss of more than Rs 10,000 crore as a result. The airline owes its different creditors a total of Rs 11,463 in debt.
Up to 77,000 clients may have been impacted by the airline’s decision to cancel 4,118 flights over 30 days, up until May 6. The airline also disclosed to the courts that it had reservations for 19 lakh people for travel at future times.
According to Kaushik Khona, CEO of the airline, “Rs 30-40 lakh” in total reimbursements were given to customers who made direct reservations.
However, it’s anticipated that unpaid fees to travel agencies and booking websites might reach double that amount. To resolve passenger complaints, they have asked that the airline offer cash refunds rather than issuing credit notes.
The DGCA has been looking into Go First, for failing to promptly repay clients. The carrier has been charged with breaking the regulations of the regulator, which calls for airlines to reimburse passengers for canceled flights within a specific amount of time.
Conclusion
A crucial milestone in the ongoing disagreement between the regulator and the airline is the DGCA’s directive to Go First to immediately cease selling airline tickets.
The action emphasizes how crucial it is for airlines to follow rules and promptly repay customers. It also highlights the difficulties that airlines are facing in the current financial situation and the necessity for them to give priority to customer service to win back the trust of their patrons.
Proofread & Published By Naveenika Chauhan
