Go First, a struggling airline that recently filed for voluntary insolvency before the National Company Law Tribunal (NCLT), has suspended the sale of tickets until May 15th, according to the airline's notification to the Directorate General of Civil Aviation (DGCA). In response, the DGCA has ordered the airline to provide refunds to affected customers. All flights have been suspended until May 9th, as per the airline's announcement.
In a statement, the DGCA referenced a show cause notice issued to Go First and confirmed the airline's application under section 10 of the Insolvency and Bankruptcy Code before the NCLT. The DGCA further stated that Go First has temporarily halted scheduled flight operations for three days starting May 3rd and will take further action based on the outcome of their application before the NCLT. The DGCA has examined the airline's response and has directed Go First to follow the relevant regulations to process refunds to passengers.
During the NCLT hearing, Go First requested the tribunal to provide ad-interim relief in the form of an interim moratorium if the plea is not admitted that day. The airline informed the court that its bank account with the consortium has been frozen and suggested appointing an Insolvency Resolution Professional (IRP) to help turn the airline around.