Go First Extends Flight Cancellations Till May 9, DGCA Asks Airline To Process Refund For Passengers
Grounded budget airline Go First on Thursday announced that its flight operations will remain cancelled from May 9, two days after it filed for bankruptcy. The airline has also suspended the sale of tickets till May 15.
The Wadia-group-owned airline was grounded on March 2 'due to operational reasons', which it blamed on US aerospace major Pratt & Whitney (P&W) for its faulty engines.?
Grounded, but not exiting
According to Go First, the faulty Pratt & Whitney engines used on its Airbus A320 planes resulted in the grounding of 28 planes, which is over half of its fleet.
Go First, which has liabilities worth Rs 11,463 crore, filed for voluntary insolvency resolution proceedings on Tuesday but has indicated that the company has no plans to exit the business.
Go Air seeks restrictions form NCLT
In a plea to the Delhi bench of the NCLT, the airline sought directions to restrain aircraft lessors from taking any recovery action ?and restrain the DGCA and suppliers of essential goods and services from initiating adverse actions.
Another plea is that the DGCA, Airports Authority of India (AAI), and private airport operators should not cancel any departure and parking slots allotted to the company.
The airline also wants fuel suppliers to continue supplying for aircraft operations and not terminate the present contractual arrangements.
Refund customers first: DGCA
Meanwhile, the Directorate General of Civil Aviation (DGCA) on Thursday directed Go First to process refunds for passengers whose bookings were cancelled.
The DGCA issued a show cause notice to the airline after it suddenly cancelled flights for three days starting May 3.
Responding to the notice, Go First informed the aviation regulator that it was working to refund or reschedule existing bookings for future dates.
"Go First has intimated that they have suspended sale of their flights till 15 May 2023 and are working to refund or reschedule for future dates, the passengers already booked to fly with them," the regulator said in a statement.
After examining the reply filed by Go First, the watchdog 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".
The regulator also said it is committed to minimising passenger inconvenience in view of the abrupt decision by Go First to suspend their scheduled operations without any prior intimation.
Bankruptcy came as a surprise? ?
Though Go First's financial troubles were well documented, even aviation industry analysts were stunned after the airline's sudden grounding and bankruptcy announcement.
Just two weeks ago, Go First had denied reports that the Wadia group was seeking to exit the aviation business to stop burning money.
"We have no plans to shed stake or exit the aviation business. Our promoters are committed to the business and are infusing further funds in the form of equity," a top company official had said.
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