Go First likely to raise funds via IPO to manage financial crisis: report

The airline Go First with a fleet of 57 aircraft is a major player in the Indian aviation sector. While its latest available financial results speak of financial difficulties, industry sources have said the airline is likely to raise funds through an initial public offering (IPO) as the airline is now recovering from the pandemic blues. .

By the way, Go First has reported a few incidents of technical malfunction lately.

The aviation regulator recently ordered its planes grounded after two of its planes witnessed technical problems leading to their July 19 hijacking.

With a fleet of 57 aircraft, Go First recorded an occupancy rate of 78.7% in June. The airline reported a market share of 9.5% in the same month.

When asked if the entry of new players, including Akasa Air and Jet Airways, had led to a labor shortage, a Go First spokesperson said: “Go First is sufficiently staffed experienced employees in all service departments including pilots, engineering personnel, in-flight personnel. crew, airport services and all other operational functions.”

According to the latest available financial data, the airline reported a loss of Rs 923 crore from April to September 2021, although its total revenue increased by 105% to Rs 1,202.90 crore during the same period.

On the financial stress most airlines are facing, aviation consultant Harsh Vardhan said most Indian airlines have suffered losses since 2008.

“Cost of operation is high in India, while aviation fuel prices are also higher. Cash flow and liquidity have been major issues, especially during the two-year period of Covid. many airlines, spare parts suppliers have not been paid completely, disrupting the supply chain,” he said.

Meanwhile, the airline spokesperson quoted above said that at Go First the safety of its passengers and crew is of paramount importance and the airline is focused on providing a safe environment for its passengers.

Regarding passenger safety, the spokesperson said: “Go First places the highest priority on passenger safety and, in line with standard procedure, all necessary preventive maintenance checks are carried out at regular intervals. Aircraft inspection and maintenance practices comply with DGCA standards. and all international and national aviation standards.”

Go First, which has expanded its network, announced direct flight services between Kochi and Abu Dhabi on June 28.

Go First, part of the Mumbai-based Wadia Group, started operations in November 2005 and has completed 16 years of successful operations.

Of its fleet of 57 aircraft, 52 are A320NEOs equipped with a fuel-efficient engine.

“Our fleet of 57 aircraft is the youngest fleet in India. The average age of the fleet is just 36 months and the technical reliability of the fleet is over 99.6%,” the carrier said. airline word.



(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor