Stop sale of tickets, DGCA tells Go First

PTI

Tribune New Service

New Delhi, May 8

Aviation regulator DGCA on Monday directed crisis-hit Go First to immediately stop bookings and sale of tickets directly till further orders. Besides, the watchdog has issued a show-cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner.

NCLT notice to SpiceJet

• The NCLT on Monday issued a notice to SpiceJet on a petition filed by an aircraft lessor seeking initiation of insolvency resolution proceedings against the budget carrier
• The petition was filed by Aircastle (Ireland) Ltd. The next date of hearing is May 17

Earlier, the airline had suspended the sale of tickets till May 15 and has cancelled flights till May 12.

The carrier has filed a plea for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), which has reserved its order.

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.

Meanwhile, the DGCA website on Monday uploaded 13 more requests from lessors for deregistration of aircraft leased to the Wadia Group-owned carrier.

This is in addition to the 20 requests uploaded by the DGCA on May 4 for deregistration of aircraft leased to Go First to pave the way for the repossesion of the aircraft by the leasing companies.

Go First has a fleet of 54 aircraft. Return of 33 aircraft will be a severe blow to the company which has moved the National Company Law Tribunal (NCLT) for voluntary insolvency resolution.

While one of the requests for deregistration uploaded on the DGCA website today was from a Japanese company, the remaining 12 requests are from multiple companies based in Dublin, Ireland. The aircraft concerned are A320 manufactured by the Airbus.

The carrier has total liabilities of Rs 11,463 crore to creditors, including Rs 2,600 crore to aircraft lessors. — With inputs

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