New Delhi: The Directorate General of Civil Aviation (DGCA) has issued a notice to the airline GoFirst for the cancellation of new bookings till May 3-4. In this notice, the airline has been asked to explain the reason. It is written in the notice that it has come to the notice of DGCA that GoFirst has canceled all scheduled flights on the 3rd and 4th of May 2023. No prior intimation has been given to DGCA for such cancellation which is not in compliance with the conditions for approval of the schedule.
Thus GoFirst has failed to report the cancellation and reasons thereof in writing. GoFirst has failed to adhere to the approved schedule causing inconvenience to passengers thereby violating the provisions of CAR, Section 3, Series M, Part IV. GoFirst said on Tuesday that it has canceled all flights for May 3 and 4 due to the financial crisis at the domestic airline. According to the Indian aviation regulator, GoFirst’s market share fell from 8.4 percent in January to 6.9 percent in March due to a reduction in flights and cancellations.
GoFirst is on the verge of bankruptcy, a lack of funds to clear dues
GoFirst said that ‘GoAir is facing a financial crisis due to non-supply of engines by P&W, due to which the planes have to be grounded. The CEO has filed an application for Voluntary Insolvency Resolution Proceedings before the NCLT. News agency ANI said the airline was short of funds to clear its dues to oil marketing companies (OMCs). An OMC official said the budget airline operates on a cash-and-carry model, which means it has to pay OMCs daily for each flight and if the payment is not made, it may shut down the business.
