Go First crisis: DGCA asks cash-strapped airline to process refunds to passengers

Civil aviation regulator Directorate General of Civil Aviation (DGCA) on Thursday asked the cash-strapped airline Go First to process refunds to all those passengers who already booked their tickets.  The Wadia Group-owned airline had cancelled all its flights till May 15 and is working to refund or reschedule for future dates, as per this notice. 

The DGCA notice accessed by Business Today reads: "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".

Meanwhile, the airline, which has filed for insolvency proceedings, took to its official Twitter handle and informed passengers that it is cancelling all its flights scheduled till May 9. Go First also said that it will issue a full refund to passengers.

Go First said: "We regret to inform that due to operational reasons, Go First flights scheduled till May 9, 2023, have been cancelled. We apologise for the inconvenience caused by the flight cancellations. A full refund will be issued to the original mode of payment shortly".

These, however, are not the only flight cancellations that Go First has done due to severe cash crunch. Go First said in its plea with the National Company Law Tribunal (NCLT) that it has already cancelled 4,118 flights in the last 30 days and will be forced to cancel more flights given the cost and fleet constraints it is reeling under at present.

The Wadia Group-owned airline also said in the plea that Pratt & Whitney backed out of its commitment to replace faulty engines within 48 hours and repair them free of cost. Go First added despite paying Pratt & Whitney Rs 400 crore till March 2020 after "recognising its failure", the engine maker refuses to recognises any claim for compensation.

The airline is facing cash crunch due to its increasing creditor overdues, negative profitability and inability to generate cash flows.

Also read: Go First crisis LIVE updates: Airline seeks intervention from NCLT to retain aircraft, restraint DGCA from any action

Also watch: Go First flights cancelled: How to claim a full refund; know if you can reschedule or transfer tickets

Also read: Go First cancels all flights till May 9; cites 'operational reasons'

Also watch: Go First flights cancelled! Here's all you need to know after airline files for bankruptcy