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The founding story of Go First: How did this airline rise from obscurity?
Go First, originally known as GoAir, is an Indian low-cost airline founded in 2005 and headquartered in Mumbai, India. The airline is owned by the renowned Wadia Group and over time, Go First has emerged from a relatively unknown player to become a major player in the Indian aviation industry. However, it has not all been plain sailing, and the airline has faced numerous challenges as it pursues growth.
Start-up process
The creation of GoAir is closely associated with its founder Jehangir Wadia. He founded the airline in 2005 and launched its first route on November 4 of the same year, from Mumbai to Ahmedabad. Initially, the airline relied primarily on a single Airbus A320 fleet and expanded rapidly during its first few years of operation, planning to have a fleet of 36 aircraft by 2008.
However, as fuel prices soared, GoAir was forced to cut back on flights in June 2008, leading to a slowdown in its growth.
Growth and Challenges
By 2012, GoAir had become India's fifth largest airline, with market share growing slowly but steadily. Meanwhile, GoAir has been slow to expand compared to other airlines such as IndiGo and SpiceJet. GoAir executives stressed that this was because they were more focused on profitability than market share.
Rebranding and international expansion
In 2021, GoAir rebranded as Go First and plans to launch an initial public offering (IPO) in 2021, aiming to raise approximately 36 billion Indian rupees (approximately US$420 million). This series of measures shows the airline's determination to explore new markets. However, with the outbreak of COVID-19, Go First faced unprecedented challenges when it suspended all international flights in March 2020.
Operational difficulties and bankruptcy filings
Go First again faces major challenges in 2023 as engine supply issues across its fleet have led to a large number of flight cancellations. The airline accused Pratt & Whitney of failing to supply engines as contracted, which directly affected its operations. Ultimately, facing a financial crisis, Go First filed for voluntary bankruptcy in May 2023.
In the days that followed, the airline had to negotiate with different stakeholders in a bid to survive.
Developing the hope for the future
After filing for bankruptcy, Go First still hopes to find an opportunity to resume operations. Several investors have expressed interest in restarting operations, including SpiceJet Chairman Ajay Singh and other investors. In February 2024, authorities granted Go First a 60-day extension for its bankruptcy resolution process to allow it to attract potential investors.
ConclusionGo First has experienced ups and downs since its inception, and despite struggling with financial difficulties, the airline remains optimistic about opportunities to restart. Its story is a journey of challenge and resilience. Do you think the company can find new opportunities to return to the skies?
