Aviation regulator,Directorate General of Civil Aviation (DGCA) on Tuesday issued a show cause notice to Go First after the airline cancelled fresh bookings from 3-4 May. Go First Airways on Tuesday informed the Directorate General of Civil Aviation (DGCA) that all flights of the airlines will remain cancelled on May 3 and May 4, an official said on Tuesday.
“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," DGCA said in the statement.
Union Aviation Minister Jyotiraditya Scindia’s has issued a official statement on the Go Air issue in which the minister stated that Go First has been faced with critical supply chain issues with regard to their engines. The Government of India has been assisting the airline in every possible manner. The issue has also been taken up with the stakeholders involved.
“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," the statement further 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.
In this regard, Go First Airways said that due to the non-supply of engines by US-based Jet engines manufacturer, operations will remain cancelled.
"Go First is facing financial crunch due to non-supply of engines by US-based jet engines manufacturer Pratt and Whitney (P&W) that has forced grounding more than 50 planes," Go First official told ANI.
The budget carrier has also filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi.
Speaking to PTI, Khona said the airline has grounded 28 planes, more than half of its fleet, due to non-supply of engines by Pratt & Whitney (P&W). This has resulted in a fund crunch.
"It is an unfortunate decision (filing for voluntary insolvency resolution proceedings) but it had to be done to protect the interests of the company," he said.
The airline has informed the government about the developments and will also be submitting a detailed report to aviation regulator Directorate General of Civil Aviation (DGCA).
Flights will be suspended on May 3 and 4. Once the NCLT admits the application, then the flights will be restarted, Khona said.
Go First has more than 5,000 employees.
*With agency inputs
Go First insolvency: DGCA issues show cause notice to airline after it cancelled flights on 3-4 May | Mint - Mint
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