EUR 91.06 For Business Accounts Only

Go Air (Go First) Pre-IPO

Go Air (Go First) is looking to raise up to US$500m in its upcoming India IPO. The company is owned by the Wadia family, who also own Brittania and a few other businesses.

Go Air is an ultra-low-cost carrier (ULCC) primarily operating in India. It had a market share of 10.8% in FY20 in the domestic market. As of Jan 2020, it covered a network of 28 domestic and nine international destinations. As of Feb 21, it had a fleet of 56 aircrafts, consisting of 46 A320 NEO models and 10 A320 CEO models.

The company was one of the earliest ULCC operators in India. Prior to COVID-19, it had been registering strong growth on the back of rapid fleet expansion with revenue growing at 20%+. However, it's not had a pleasant last few years as COVID-19 led to a drastic fall in volumes and the company was unable to pay some of its creditors and lessors. Owing to the drag on demand, its borrowing too has been rising.

Furthermore, despite a gain in market share the company remains well behind the current market leader in terms of size and probably in terms of its reputation as well. To add to it, the sector has been undergoing consolidation and over the next few months will see an increase in competition as new airlines are launched and defunct ones make their way back to the skies.