Banrukpt Go First Airline has been asked to stop taking fresh bookings till further orders.
The aviation watchdog, Directorate General of Civil Aviation (DGCA) issued a notice to the Wadia Group-owned carrier for its failure to continue the operation of the service in a safe, efficient and reliable manner, PTI reported citing sources.
The airline, which had suspended the sale of tickets till May 15 and has cancelled flights till May 12, has already filed a plea for voluntary insolvency resolution proceedings. The National Company Law Tribunal (NCLT) has reserved its order in the plea.
According to PTI sources, the airline has been directed to stop the booking and sale of tickets directly or indirectly, with immediate effect and until further orders.
The airline has been asked to submit its reply within 15 days of the receipt of the show cause notice, and further, a decision on the continuation of its Air Operators Certificate (AOC) will be taken on the basis of the reply submitted by it, the source added.
Go First CEO Kaushik Khona had said the airline 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.
After Go First’s announcement to cancel flights on May 2, the DGCA issued a show-cause notice.
“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," read the notice.
“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," it added.