Go First Served Notice by DGCA, Flight Ticket Sales Paused Indefinitely: Report

Go First had previously grounded all flights till 12 May, as per reports.

The woes of low-cost carrier Go First continued to grow on Monday, 8 May.

The latest: A show-cause notice issued by the Directorate General of Civil Aviation (DGCA) directed Go First to halt all bookings and sale of tickets right away, news agency PTI reported citing unnamed sources.

• The notice was reportedly issued under specific provisions of the Aircraft Rules, 1937.

• The airline's "failure to continue the operation of the service in a safe, efficient, and reliable manner" served as grounds for the notice, as per the report.

• Go First air tickets are no longer available on its website and online travel platforms, Moneycontrol reported.

Why it matters: The airline has been asked to reply to the notice within 15 days, according to ANI. Based on the reply, DGCA will reportedly take a call on Go First's Air Operators Certificate (AOC).

Timeline: On 2 May, the Wadia group-owned airways terminated flights for two days and filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) in Delhi.

• Hours later, the DGCA issued a show-cause notice to the airline on the cancelled bookings.

• After hearing the plea on 4 May, NCLT reserved its order.

• The domestic carrier had grounded all its flights till 12 May and had suspended ticket bookings till 15 May.

Next moves: "The NCLT will decide if it is going to admit or reject the insolvency application," a company law expert told The Quint.

• If the tribunal accepts the application, the airline's board will be dissolved.

• After that, a resolution professional (RP) will be appointed in order to initiate the process of seeking the claims of various creditors among stakeholders.

• For the interim, the airline's functioning will be overseen by a committee of creditors.

Meanwhile, a parliamentary panel has reportedly summoned Ministry of Civil Aviation officials to discuss a cap on airfares amid peak-season.

(With inputs from PTI, ANI, and Moneycontrol.)