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DGCA asks Go First to refund passengers amid cash crunch

by Lagatar News
04/05/2023
in Business & Corporates, National & International
A A
Source: Times of India

Source: Times of India

Lagatar24 Desk

 

New Delhi, May 4: The Directorate General of Civil Aviation (DGCA) on Thursday asked the cash-strapped airline GoFirst to refund passengers who purchased tickets for flights that were postponed or cancelled.

The airline owned by the Wadia Group filed a voluntary insolvency case citing a serious funds shortage, prompting the DGCA’s statement.

“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,” it said.

The airline had previously received a show-cause letter from the civil aviation regulator inquiring about its sudden decision to halt operations.

Go First stated in its bankruptcy filing that it had temporarily halted all flights until May 5, 2023, while it decided what to do next in light of the NCLT hearing.

Go First has also stated that it will not be selling any more airline tickets until May 15. The DGCA instructed the airline to process refunds for customers who had purchased tickets for travel at a later date because the airline’s future is still up in the air.

In light of Go First’s sudden decision to cancel their scheduled operations without prior notice, the DGCA stated that it is committed to minimising passenger problems.

 

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