Budget carrier Go First Airline has denied reports that its promoter Wadia Group is planning to sell stake in the company in order to exit aviation business to stop burning money, news agency ANI reported.
The development came after The Economic Times on Monday reported that Go First has been tackling huge operational and financial issues lately
Budget carrier Go First Airline has denied reports that its promoter Wadia Group is planning to sell stake in the company in order to exit aviation business to stop burning money, news agency ANI reported.
"We have no plans to shed stake or exit the aviation business. Our promoters are committed to the business and are infusing further funds in the form of equity," a top company official told ANI.
The official added that the carrier was confident of receiving Rs 600 crore in the form of promoter equity and bank loan.
The development came after The Economic Times on Monday reported that Go First has been tackling huge operational and financial issues lately. In addition to this, some aircraft of Go First have also been grounded due to supply chain issues, especially those related to Pratt & Whitney (P&W) jet engines.
“It is a difficult situation that is being tackled. We are burning money with our aircraft on the ground. We have spent Rs 3,000 crore in the last 15 months to keep the airline afloat......All options are being considered, and multiple scenarios have been planned. The last option, unfortunately, will be to exit the airline business,” ET quoted a source aware of the development as saying.
The Economic Times report added that almost 60 per cent of Go First planes are on the ground due to the engine supply issues that have yet to be sorted out with P&W, and that has led to huge losses for the airline in an otherwise upbeat market.