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The Directorate General of Civil Aviation (DGCA) on Thursday asked Go First airline to refund passengers, who have been affected by ticket cancellations, following regulations.
Go First, which was operating about 200 flights a day, on Tuesday initiated the insolvency process and cancelled all flights from May 3-5. On Thursday, the airline announced on Twitter that it was extending the cancellation till May 9. The airline is also not taking any new bookings for flights from May 10-15.
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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 has blamed PW for its cash crunch.
The DGCA had on Tuesday 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 on Thursday.
The DGCA said the airline informed it about the “temporary suspension” of flights from May 3-5 and its further course of action will be decided according to the outcome of their application before the NCLT.
Go First has also told the DGCA that it has “suspended the 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 prevailing regulations, directing them to process refunds to passengers as per the timelines specifically stipulated in the relevant regulation,” the regulator said.
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The DGGA noted that it was committed to minimising 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. “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.
According to the DGCA regulation, if a flight is cancelled less than two weeks but up to 24 hours of the departure time, the airline must offer an alternate flight or offer a full refund. If the airline does not inform the passenger at least 24 hours before the departure time, then it has to pay a compensation of anywhere between Rs 5,000 and Rs 10,000, the regulation stated.
Spot airfares on Go First’s top routes have increased with the airline not operating any flights Wednesday onwards. Airfares increased on major routes, including Delhi-Srinagar, Mumbai-Goa and Delhi-Leh, by up to 43 per cent.
Go First was the strongest on the Delhi-Srinagar route. The carrier was scheduled to operate 75 flights a week in May on the route, according to aviation consultancy firm Cirium’s data. According to data provided by ixigo, the spot airfares on Delhi-Srinagar have jumped 17.82 per cent within a week.
