For 15 consecutive months starting September 2018, India’s low-cost carrier Go First (formerly Go Air) topped the on-time performance (OTP) ranking beating heavyweights like IndiGo and Vistara.
However, with the grounding of nearly half of its fleet for lack of spare engines, the Wadia Group-promoted company has ranked last in OTP every month since September this year. This was followed by a market share erosion that was at its second worst level since 2015 barring the Covid-19 period of disruption of 2020.
AirAsia India with a fleet size of less than half compared to Go First has a better market share, according to data shared by the Director General of Civil Aviation (DGCA).
While claiming to have one of the youngest fleets in the world with an average age of under 4.5 years, Go First’s aircraft inventory comprising Airbus A320neo has been hit repeatedly by engine issues leaving only 33 of its 60 aircraft in operational condition.
The company claims to have received 17 replacement engines from its supplier Pratt & Whitney which are being used for putting the grounded aircraft back into the air. However, Go First refuses to outline the number of aircraft that are expected to become operational again.
“We don’t have the information about the number of aircraft that are expected to be ready again but these should become operational in 10-15 days. We will get more engines progressively,” said a spokesperson of Go First.
While engines are creating operational problems, financial woes are bleeding the airline. Last financial year Go First recorded its biggest-ever loss at ₹1,808 crore on a revenue of ₹4,184 crore which was the lowest since 2018. The company has a negative net worth of ₹3,222 crore, as per disclosures made by it for FY22.
With aggressive expansion plans shared by Tata Group-run Air India and market leader IndiGo
“Go First needs capital to sustain the onslaught of others. It has remained the only true LCC with a single fleet type model unlike IndiGo and SpiceJet
In mid-December Go First conducted an extraordinary general meeting (EGM) for considering a special resolution which proposes to raise ₹510 crore by way of issue of preference shares through private placement. The proceeds from the issuance were proposed to be used for meeting working capital needs and general corporate purposes.
Wadia Group controlled entity participated in the fund raising, as per disclosures made by Go First. The promoter shareholding in the company will fall to under 43% (56.23%) post the issue while that of foreign investor which belong to the promoter group will rise to 46% (29.24%).
Engine issues notwithstanding last month Go First announced plans of starting 42 direct flights every week to Goa’s new Mopa international airport. Starting January 5, the troubled airline will connect the new airport with Mumbai, Hyderabad and Bengaluru.