Go First, the Indian low-cost airline, is reportedly exploring several options to tackle the challenges it faces in the current aviation industry environment. The airline, which was previously known as GoAir, has been impacted by a range of factors, including rising fuel prices, pandemic-induced restrictions, and intense competition from other players in the market. In response, Go First is said to be looking at various avenues to stay afloat and come out stronger.
One of the key options being explored by Go First is the possibility of raising funds through an initial public offering (IPO). The airline has reportedly been in talks with investment banks and advisors to assess the feasibility of going public. If successful, an IPO could provide the airline with a much-needed injection of capital, which could be used to fund its expansion plans and pay off debts.
Go First’s CEO, Kaushik Khona, was quoted as saying, “We are seriously considering an IPO as a potential avenue to raise funds. However, it is too early to comment on the specifics at this stage.” He added that the airline was also exploring other options, including the possibility of raising funds through private equity and debt.
Another option being considered by Go First is to expand its operations by adding more routes and destinations. The airline currently operates a fleet of Airbus A320neo aircraft and serves 34 domestic and international destinations. However, with the aviation industry gradually recovering from the impact of the pandemic, Go First is reportedly looking to add more routes to its network, particularly in underserved areas.
In a recent interview, Khona said, “We are constantly evaluating new routes and destinations that we can add to our network. We believe that there is significant potential in the regional aviation market, and we are looking at ways to tap into that.”
Go First is also said to be looking at ways to improve its operational efficiency and reduce costs. This could involve measures such as renegotiating contracts with suppliers, optimizing its fleet utilization, and reducing its workforce. The airline has already taken steps in this direction by renegotiating its lease agreements with aircraft lessors and cutting salaries of senior executives.
The airline’s management is also said to be exploring the possibility of introducing new ancillary services to boost revenue. This could include offering in-flight meals, lounge access, and other services to passengers for an additional fee. Go First is also looking at ways to improve its digital capabilities and enhance the overall customer experience.
Despite the challenges it faces, Go First remains optimistic about its future prospects. The airline has a strong track record of delivering quality service at affordable prices, and it has a loyal customer base. Moreover, the Indian aviation market is expected to grow significantly in the coming years, driven by rising income levels and increasing air travel demand.
Khona said, “We are confident that we will emerge from this crisis stronger and more resilient than ever before. We have a clear roadmap for the future, and we are working hard to execute on it. We believe that there is a significant opportunity for Go First to grow and expand in the coming years.”
In conclusion, Go First is facing a challenging environment, but it is exploring several options to address these challenges. The airline’s management is considering options such as an IPO, expanding its operations, reducing costs, and introducing new ancillary services. With the Indian aviation market poised for growth, Go First remains optimistic about its future prospects and is working hard to emerge stronger from the current crisis.
