Go First

Go First, founded as GoAir,[4] was an Indian ultra-low-cost airline based in Mumbai, Maharashtra. It was owned by the Indian business conglomerate, Wadia Group. In October 2017, it was the fifth largest airline in India with an 8.4% passenger market share.[5] It commenced operations on 4 November 2005 and operated a fleet of Airbus A320 aircraft in an all economy configuration.

Not to be confused with IndiGo.
For other airlines, see Go Airlines (disambiguation).

Go First
IATA ICAO Callsign
G8 GOW GO AIR
Founded4 November 2005 (2005-11-04)
(as GoAir)
Commenced operations
  • 4 November 2005 (2005-11-04)
    (as GoAir)
  • 13 May 2021 (2021-05-13)
    (as Go First)
Ceased operations3 May 2023 (2023-05-03) [1]
Operating bases
Fleet size53
Parent companyWadia Group
HeadquartersMumbai, Maharashtra, India
Key people
RevenueIncrease ₹4,553 crore (US$570 million) (FY 2017)[3]
ProfitIncrease ₹294.88 crore (US$37 million) (FY 2017)[3]
Websitewww.flygofirst.com

In March 2020, the airline operated over 330 daily flights to 36 destinations, including 27 domestic and nine international destinations, from its bases at Mumbai, Delhi, Bangalore, Kolkata, Hyderabad and Chandigarh,[6] and Kannur.[7][8] The airline was planning to launch an IPO[9] to raise Rs 36 billion from the primary market and has filed a DRHP for the same with Indian stock market regulator, Securities and Exchange Board of India (SEBI).[10] The airline ceased operations on 3 May 2023. The airline justified this step with problems with its Pratt & Whitney GTF high-bypass turbofan engines which are operated by the entire A320neo fleet of the airline, and filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal.[11][1]

History
A Go First Airbus A320-200 in its former GoAir livery (2011).
A Go First Airbus A320neo in the old GoAir Livery. In 2022, the airline adapted a new livery as a part of its rebranding.

Foundation

Go First was founded as GoAir on 4 November 2005 by Jeh Wadia, son of Indian industrialist Nusli Wadia. The airline is a wholly-owned subsidiary of the Wadia Group.[12] GoAir commenced its operations using an Airbus A320 aircraft and operated its inaugural flight from Mumbai to Ahmedabad on 4 November 2005.[12] The airline initially operated with a single aircraft to four destinations including Goa and Coimbatore with plans to induct 36 aircraft by 2008.[13] In March 2008, the airline announced revised plans to operate 11 aircraft and service new destinations in North East and South India by the end of the year.[14] Increasing fuel prices forced Go First to decrease the existing number of flights in June 2008.[15]

In January 2009, British Airways was interested in buying a stake in the airline.[16] In November 2009, GoAir entered into talks with Indian airline SpiceJet over a possible merger which ended in a no deal.[17]

Development since 2010

In April 2012, GoAir became the fifth largest airline in India in terms of market share following the demise of Kingfisher Airlines.[18] In 2013, the airline appointed investment bank JP Morgan to scout for potential investors.[19] The airline's growth has been slow compared to other airlines established at the same time such as IndiGo and SpiceJet, which have larger market share, fleet size and destinations served as of 2016.[20]

According to the airline, it is a planned strategy due to the tough aviation environment in India and to focus on maintaining profitability rather than on capturing market share and increasing the destinations and fleet size.[21][22] As of February 2016, it was the fifth largest carrier in the country with an 8% market share.[23] The airline is planning for an initial public offering (IPO) in 2020.[24] The airline took delivery of its 20th aircraft in June 2016, making it eligible to operate international flights.[25]

GoAir became the sixth Indian domestic carrier to fly internationally when it launched its inaugural flight to Phuket from New Delhi on 11 October 2018.[26]

On 17 March 2020, due to the impact of the COVID-19 pandemic, GoAir suspended its international flights.[27] On 13 May 2021, GoAir was rebranded as Go First.[28]

Bankruptcy

The airline claims to have been largely impacted by supply chain issues of Pratt & Whitney PW1000G engines which power their A320neos. According to the airline, this eventually led to financial trouble and the cancellation of all its flights till 26 May due to a cash crunch and filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal in Delhi on 2 May 2023. It also sued Pratt & Whitney in a US federal court seeking to enforce an arbitral award directing supply of engines as contracted.[29][30] Pratt & Whitney has disputed these claims.[31]

Go First's bankruptcy plea was heard by the National Company Law Tribunal. The airline was seeking interim directions to continue functioning and requesting restrictions on any adverse regulatory action. However, the tribunal ruled that there is no provision for interim relief under the rules. Go First had to ground half of its fleet of Airbus A320neo planes, resulting in a loss of 108 billion rupees ($1.3 billion; £1 billion) in revenue and expenses. The airline accused Pratt & Whitney of non-compliance with an emergency arbitrator's order, including supplying "at least 10 serviceable spare leased engines by 27 April 2023". Pratt & Whitney responded by stating that it was complying with the arbitration ruling. Go First's management confirmed that the insolvency proceedings were focused on reviving the airline and not selling it. Go First's CEO, Kaushik Khona, stated that the Wadia Group, have no plans to exit. Due to non-payment of rental dues, leasing companies have repossessed some of Go First's leased planes. According to aviation analytics firm Cirium, Go First was scheduled to operate over 6,225 flights in May, equating to more than 1.1 million seats.[32]

On 26 June it was confirmed that the airline's creditors had approved interim financing of Rs 425 crore aimed at returning it to operation, pending board approval.[33]

In mid-August 2023, the airline sought emergency funding of Rs 100 crore to keep itself afloat. Around a week later, over 150 employees including pilots, cabin crew, ground handling and engineering employees reportedly quit with more than 100 predicted to leave in the very near future. These resignations are following a report that states the airline is struggling to pay their salaries. [34][35]

Corporate affairs

The airline is headquartered in the Wadia International Centre in Worli, Mumbai, India.[36] Jehangir Wadia served as the managing director of the airline since its inception until his resignation in 2021.[22] Kaushik Khona is the CEO of Go First.[37]

Services

Being a budget airline, Go First does not provide complimentary meals on its flights but offers options for buy on board in-flight meals.[38] The airline publishes an in-flight magazine named Go-getter.[39] Go First offers a premium service known as Go Business at a higher fare which provides extra services including seats with greater legroom, free meals, increased baggage allowance and priority boarding.[40] In 2011, the airline launched its frequent flyer programme called Go Club, which provided benefits such as lounge access and free upgrade to Go Business.[41] New membership was discontinued in February 2014.[42]

Accolades

Go First was rated as the "Best Domestic Airline For Excellence in Quality and Efficient Service" by Pacific Area Travel Writers Association in 2008.[43] The airline was named the "Best Performing Airline" in Asia and Africa of all Airbus A320 operators by Airbus in 2011 based on fleet utilization and other performance metrics.[44]

Destinations
See also: List of Go First destinations

In March 2020, Go First operated a network of 39 destinations – 29 domestic and 10 international to Thailand (Bangkok and Phuket), Muscat, Abu Dhabi and Dubai, Kuwait City, Singapore, Colombo and Malé. As of now, Go First operates international flights from Mumbai, Delhi, Bengaluru, Kannur and Kolkata. The airline has a total of 325 daily flights and more than 2200 weekly flights.[7][45] The airline maintains bases at Delhi, Kolkata, Bengaluru, Kannur and Mumbai airports.[46]

The airline commenced its first international operations on 11 October 2018 from Delhi to Phuket, then from Mumbai to Phuket on 12 October, Mumbai and Delhi to Malé on 14 and 17 October respectively. [47]

Fleet

Current fleet

Prior to ceasing operations, Go First operated an all Airbus A320 fleet:[48][49]

Aircraft In service Orders Passengers Notes
Airbus A320-200 5 — 180 —
Airbus A320neo 49 88 186 —
Total 54 88

Fleet development

In June 2011, Go First placed an order for 72 Airbus A320neo aircraft worth ₹32,400 crore (US$4.1 billion). Deliveries began in 2016, with an induction rate of 12–15 aircraft per year.[50] In December 2015, Airbus intimated that the deliveries will be delayed by three months due to technical issues and the aircraft will be delivered by the second quarter of the financial year 2015–16.[51] Go First received its first A320neo aircraft on 1 June 2016.[25]

In July 2016, Go First signed a memorandum of understanding with Airbus for 72 Airbus A320neo aircraft valued at US$7.7 billion, potentially taking the total number of orders to 144. This deal was announced at Farnborough Airshow.[52]

See also

References
  1. "Go First insolvency: NCLAT to pass order on aircraft lessors' petitions on May 22". The Telegraph. New Delhi. 15 May 2023. Retrieved 15 May 2023.
  2. "GoAir appoints Kaushik Khona as new CEO, to replace Vinay Dube". Livemint. 14 August 2020. Retrieved 14 August 2020.
  3. "ANNUAL REPORT 2016-17" (PDF). Official Website of GoAir. p. 8. Archived from the original (PDF) on 16 May 2018. Retrieved 16 May 2018.
  4. "GoAir rebrands as GO FIRST after 15 years of flying – Times of India". Times of India. 13 May 2021. Retrieved 13 May 2021.
  5. http://dgca.nic.in/reports/Traffic_reports/Traffic_Rep072017.pdf%5B%5D
  6. "GoAir,CHANDIGARH (IXC) · New Civil Air Terminal Chandigarh, village, Jhiurheri, Punjab 140306, India". GoAir,CHANDIGARH (IXC) · New Civil Air Terminal Chandigarh, village, Jhiurheri, Punjab 140306, India. Retrieved 2 August 2021.
  7. "Route Map". Goair.in. 11 October 2019.
  8. "GoAir's Inflight Magazine" (PDF). www.goair.in. March 2020. Retrieved 22 March 2020.
  9. Raj, Shubham. "There is a reason why GoAir is in a hurry to go public". The Economic Times. Retrieved 28 May 2021.
  10. Gyan, Pradeep (28 May 2021). "Go Airlines (India) Limited – DRHP". SEBI. Retrieved 28 May 2021.
  11. Mascarenhas, Francis (12 May 2023). "Go First's financial crisis and its Pratt & Whitney dispute: what you need to know". Reuters. New Delhi. Retrieved 15 May 2023.
  12. "GoAir: About us". GoAir. Archived from the original on 23 March 2016. Retrieved 15 April 2016.
  13. "GoAir begins commercial flights". The Economic Times. 4 November 2005. Retrieved 15 April 2016.
  14. "GoAir to expand operations in South, Northeast". The Economic Times. 16 March 2008. Retrieved 15 April 2016.
  15. Roy, Mithun (11 July 2008). "GoAir to drop 300 flights to reduce losses". The Economic Times. Retrieved 15 April 2016.
  16. Roy, Mithun (5 January 2009). "British Air wants to buy 25% in GoA". The Economic Times. Retrieved 15 April 2016.
  17. Bhalla, Mohit; Chatterjee, Paramita (17 November 2009). "GoAir, SpiceJet deal enters air pocket". The Economic Times. Retrieved 15 April 2016.
  18. "Air India, Kingfisher Airlines market share shrinks". The Economic Times. 17 May 2012. Retrieved 15 April 2016.
    - "IndiGo market share shrinks for 2nd month in a row in December". The Economic Times. 22 January 2014. Retrieved 15 April 2016.
  19. Shah, Sneha; Singhal, Manisha; Vyas, Maulik (9 May 2013). "GoAir scouts for partners to sell 49% stake". The Economic Times. Retrieved 15 April 2016.
  20. "What keeps GoAir up in the air". Rediff. 4 June 2015. Archived from the original on 24 April 2016. Retrieved 15 April 2016.
  21. Mishra, Lalatendu (3 March 2013). "We will not sell under cost". The Hindu Business Line. Chennai, India. Archived from the original on 5 July 2014. Retrieved 15 April 2016.
  22. "Stay small till customer has a need, not want: Jeh Wadia". The Times of India. 16 February 2012. Archived from the original on 11 April 2013. Retrieved 15 April 2016.
  23. "India's domestic passenger demand up 25 percent: IATA". Business Standard. 6 April 2014. Archived from the original on 23 April 2016. Retrieved 14 April 2016.
  24. "GoAir awaits Airbus delivery schedule to decide IPO timing". Live Mint. 28 March 2016. Archived from the original on 18 April 2016. Retrieved 14 April 2016.
  25. "GoAir takes delivery of its first Neo aircraft". Live Mint. 1 June 2016. Archived from the original on 5 June 2016. Retrieved 5 June 2016.
  26. "GoAir launches maiden Delhi-Phuket flight". The Hindu Business Line. 12 October 2018. Retrieved 8 August 2019.
  27. "GoAir suspends international operations". Mint. 17 March 2020. Retrieved 18 March 2020.
  28. All Systems Go for rebrand Airliner World August 2021 page 16
  29. "Cash-strapped Go First cancels May 3, 4 flights, to file for insolvency". 2 May 2023. Retrieved 2 May 2023.
  30. "GoFirst Cancels Flights till 26th May 2023 due to Operational Reasons". 12 May 2023. Retrieved 12 May 2023.
  31. "Go First's financial crisis and its Pratt & Whitney dispute: What you need to know". Reuters. 12 May 2023.
  32. "Go First: What went wrong with Indian airline?". BBC News. 4 May 2023. Retrieved 5 May 2023.
  33. "Go First creditors approve Rs 425 cr interim fund to revive airline, await board nod". The Economic Times. 25 June 2023. ISSN 0013-0389. Retrieved 26 June 2023.
  34. "Go First asks lenders for Rs 100 crore emergency funding: Report". Business Today. 14 August 2023. Retrieved 18 August 2023.
  35. "Go First Reportedly Faces Another Wave Of Mass Resignation". Simple Flying. 18 August 2023. Retrieved 18 August 2023.
  36. "Our Offices". Go First. Retrieved 13 December 2022. Go First Head Office: [...]
  37. "Turnaround Expert Kaushik Khona Back in Gear Cockpit for Second Inning".
  38. "GoAir Menu". GoAir. Archived from the original on 23 April 2016. Retrieved 16 April 2016.
  39. "Go Getter In-flight magazine". GoAir. Archived from the original on 24 March 2016. Retrieved 16 April 2016.
  40. "Go Business". GoAir. Archived from the original on 24 March 2016. Retrieved 16 April 2016.
  41. Phadnis, Aneesh (11 December 2011). "GoAir flies on new routes to lure passengers". Business Standard. Archived from the original on 4 August 2016. Retrieved 5 June 2016.
  42. Hill, Ruben (27 April 2016). "GoAir Frequent Flyer Program". ISP online. Archived from the original on 23 September 2016. Retrieved 5 June 2016.
  43. "PATWA International Awards" (PDF). PATWA. Archived from the original (PDF) on 24 April 2016. Retrieved 30 March 2013.
  44. "GoAir ranked the Best Performing Airline by Airbus". Breaking Travel News. 1 June 2011. Archived from the original on 20 December 2013. Retrieved 30 March 2013.
  45. "International Flights". Goair.in. 11 October 2019.
  46. Majumder, Arindam (13 July 2016). "GoAir readies foreign flight with IPO on mind". Business Standard. Archived from the original on 31 January 2017. Retrieved 18 January 2017.
  47. traveltrade (19 July 2019). "GoAir expands international operations with the addition of new flights". Travel Trade Insider. Retrieved 18 August 2023.
  48. Airbus Orders and Deliveries (XLS), monthly updated, accessed via "Orders & deliveries". Airbus. Airbus SAS. 31 October 2022.
  49. Gyan, Pradeep (28 May 2021). "About Us : GoAir". GoAir. Retrieved 1 September 2018.
    - "Go First Fleet details". Airfleets. Retrieved 1 September 2018.
  50. "GoAir orders 72 Airbus jets for Rs. 32,000 crore". Times of India. 17 June 2011. Archived from the original on 25 June 2016. Retrieved 16 April 2016.
  51. "A320neo delivery to GoAir likely to be delayed". The Economic Times. 20 December 2015. Retrieved 16 April 2016.
  52. "Business Standard – GoAir new order for 72 further NEO's". 13 July 2016. Archived from the original on 15 July 2016.

Media related to GoAir at Wikimedia Commons

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.