Wednesday, September 06, 2017

Wadia group owned GoAir hits revenue and profit air pocket; will it lead to exit of CEO Wolfgang Prock-Schauer?

New Delhi: GoAir, the wholly-owned subsidiary of The Wadia Group, seems to have hit an air pocket with a status-quoist market share of 8-8.5% since 2013, perhaps signalling the non-renewal of contract of its CEO Wolfgang Prock-Schauer, which expires in June next year.

Besides, revenue and profitability have also taken a beating. If the FY15 revenue of the low-cost carrier totted up to Rs 2,973 crore, it dipped to Rs 2,791.3 crore in FY16, as did profitability, from Rs 277.3 crore to Rs 150.2 crore — a whopping 45.8% drop. Though the airline has still not filed its FY17 numbers with the Registrar of Companies, estimates are that profits during the year would come down to around `100 crore.
It seems the 12-year journey of GoAir has been slow compared with other airlines established at the same time, such as IndiGo and SpiceJet, which have larger market share, fleet size and destination served. Top-seeded IndiGo, for instance, has garnered 40.8% of the market, while SpiceJet sits at fourth spot with 12.9%. GoAir is at the fifth spot.
06/09/17 Financial Express

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