Mumbai: Wadia Group-owned Go First airline is open for partnerships, though the promoters are not looking exit from the loss-making aviation business. The budget airline is facing shortage of engines and is likely to incur a loss of ₹1,800 crore in the just concluded fiscal of 2022-23.
Go First airline sources said that the company expects around ₹600 crore fund infusion in the coming weeks.
The airline had a market share of around 8-10% for the past many. However, it has declined to around 6.9% in March this year, as many of its aircraft have been grounded. “We are certainly expecting proposals for encouraging partnership but it does not mean that we are out to sell,” said a senior official of Go First airline.
In recent times, the Indian aviation is getting a lot of traction. “There are reports that some airlines, some entrepreneurs are looking to invest in the airline segment, particularly after opening of new routes. This emboldened our confidence for investment proposal,” the official said.
“However, we are not in any hurry. We are open for partnerships and would go for it after evaluation of the deal. But it does not mean that we are on the bloc” he said.
Earlier domestic aviation was constrained because of various factors including Covid-19 and fuel prices, among others, but after October last year things are much better with a better yield and load factor, experts on aviation opined.
The airline management is hopeful of getting around ₹600 crore liquidity soon as the promoters are adding more equity. While the promoters have allocated ₹300 crore to pump it, it has arranged funds to the tune of ₹300 crore from banks under the emergency credit guarantee line scheme. Occasional capital infusion in the airline has ensured that the airline is not only up and running, but it is also adding to its fleet also.
Currently, the airline is operating only with 36-37 aircraft, as 25 of its Airbus A320Neo aircraft are grounded. “We have got 18 engines-17 in December (which made the airline recover eight aircraft) and one in March. We are expecting two more engines in April. We are still awaiting the final picture and the balance supply of March is expected to be delivered to us in May,” he said.