No plans to exit business: Go First airlines

April 18, 2023 14:17

India's ultra-low-cost carrier Go First Airlines has refuted rumours that it was planning to exit the aviation business amid a cash crunch.

The company has been battling several operational issues in the recent past owing to a shortage of engines.

Speaking to ANI, a top official of Go First Airlines said, "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."

The Go First official informed further that the carrier was very confident of receiving Rs 600 crore in the form of promoter equity and bank loan by the end of April.

The official said, "This would help us meet our immediate capital requirements. The Wadia family and the bank will provide Rs 300 crore each." "Promoters have consistently supported the airline from inception and provided liquidity from time to time," the official added. "Covid, as well as the unrest in Russia and Ukraine, affected the supply chain of the aircraft's engine to the company," the official said further.

The aviation industry has been growing at pre-Covid levels but airline companies are facing cash flow and liquidity issues, impeding the smooth running of their daily business.

Currently, Go First is running daily operations with 28 aircraft out of the airline's fleet of 57, with the remaining aircraft grounded due to trouble with engines supplied by American manufacturer Pratt & Whitney.

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