Wadias to stay invested in GoAir, says CEO

Mumbai: The Wadias will stay invested in Go Air despite the sharp rise in oil prices impacting its profitability, said Edgardo Badiali, CEO, Go Air.
Badiali’s claim comes amidst speculations about the airline’s future. Go Air recently withdrew from four sectors, pruned manpower by 30 per cent and decided not to renew the lease agreements of four aircraft.
“The promoters are fully committed to the airline and there is enough financial backing from the group to grow the airline business,” the Go Air CEO said.
“Due to the oil crisis, we are taking drastic measures to cut costs from all sides and restructuring the operations to be leaner as controlling oil prices is out of question,” Badiali said.
As various factors led to increased losses, the airline pulled out from sectors like Kochi, Chennai, Bangalore and Jaipur over the past few months and also reduced its manpower from 1,200 to 800.
Now, the airline operates 26 flights a day against 40 flights earlier. The sectors where Go Air currently operates include, Delhi, Mumbai, Ahmedabad, Goa and Jammu & Kashmir.
Once the situation improves, the airline might re-open the closed routes or even improve frequencies on the existing ones.
10/07/08 Lalatendu Mishra/Hindustan Times

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Categories: GoAir Jul 2008