The Directorate General of Civil Aviation (DGCA) asked Go First airline to refund passengers who have been affected by ticket cancellations, as per the regulations. Go First, which operated about 200 flights per day, initiated an insolvency process and cancelled all flights May 3-5. On May 4, the airline announced on Twitter it is extending the cancellation till May 9. The airline is not taking any new bookings for flights between May 10 and 15. Almost half of the airline’s 57 aircraft fleet is grounded due to delay in engine supply by US-based Pratt & Whitney (PW). The airline blames PW for its cash crunch. The DGCA issued a show cause notice to Go First. “Go First has sent their response wherein they have intimated that an application under Section 10 of the IBC (Insolvency and Bankruptcy Code, 2016) has been filed by them before the NCLT (National Company Law Tribunal),” the DGCA said in a statement.The aviation regulator said it has been told by the airline that it has “temporarily suspended” flights from May 3-5 and its further course of action will be decided as per the outcome of an application before the NCLT.
Go First also told the DGCA that it has “suspended sale of their flights till May 15” and is working to refund or reschedule for future dates, the passengers already booked to fly with them. “The DGCA has examined the response of Go First and 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 said. The DGGA noted that it is committed to minimizing passenger inconvenience in view of the abrupt decision by Go First to suspend their scheduled operations without any prior intimation, it mentioned. Aviation consultancy firm CAPA India said on Twitter that India should urgently introduce mechanisms to institutionalise consumer protection, providing full refunds in the event of airline closure, along the lines of ATOL in the UK that is run by that country’s Civil Aviation Authority (CAA). “CAPA India has been recommending this since 2011,” it added. Under the ATOL (Air Travel Organiser’s Licence) scheme, any UK travel company that sells flights or holidays is required to hold an ATOL. If the company goes out of business, the ATOL scheme will provide refunds or repatriation to consumers who have booked a holiday or flight with that company. (Source: The Business Standard)