Go First Crisis: Amid voluntary insolvency proceedings, DGCA has asked Go First to stop selling airline tickets immediately
The Go First bankruptcy crisis has taken a big turn as the Directorate General of Civil Aviation (DGCA) has asked Go First to stop selling tickets with immediate effect. While the airline has not responded to DGCA's new directive, the move comes as a major update in the already on-going Go First insolvency.
As per official updates, days after Go First cancelled all flight bookings till May 15, 2023, DGCA has stepped up and asked the airline to stop selling any tickets till a resolution is sought. The severly fund crunch-hit airline has been having a tough time lately in the Indian aviation space, especially with the voluntary insolvency proceedings on.
For the unversed, Go First filed for voluntary insolvency proceedings in the National Company Law Tribunal (NCLT) after the airline faced a massice fund crunch. Blaming Pratt & Whitney in its plea, Go First also sought a timely resolution.
While the NCLT heard the matter last Thursday, it did not immediatley pass any orders and simply reserved them. As of Monday, two more petitions were filed in response to Go First's insolvency proceedings. Later in the day, the airline also sought a faster resolution from NCLT, on the orders that were reserved last Thursday.
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