Go First denies report of promoters planning to exit business, says 'no plans to shed stake'

Go First airline has denied reports that Wadia group, which owns the ultra-low-cost carrier, has sought to sell stake in the company in order to exit the aviation business amid a cash crunch.

"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 Go First official also said 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.

"This would help us meet our immediate capital requirements. The Wadia family and the bank will provide Rs 300 crore each," the official added.

The comment comes after a report said that Wadia Group is in talks with strategic partners to either sell a majority stake in loss-making budget airline Go First or completely exit it.

Go First posted its biggest annual loss in fiscal 2022 and has been facing operational problems in the last few months as half of its aircraft were grounded due to supply chain disruptions related to Pratt & Whitney (P&W) jet engines, the report said.

"Promoters have consistently supported the airline from inception and provided liquidity from time to time," the official said.

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.

As of now, 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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