Wadia Group, the owner of Go First airlines may reportedly sell a majority stake or exit the loss-making carrier business. As per a report, the Wadia Group has begun talks with strategic partners for the same.
According to a report in the Economic Times, Go First has been tackling huge operational and financial issues lately. In addition to this, some aircrafts 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 ₹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.
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At a time when the domestic aviation market is changing for good, as experts believe, Go First getting a grip over its situation becomes important. The publication also quoted another source as saying, “Almost 60% 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.”
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