New Delhi: The IPO-bound Go Airlines is set to induct 22 new planes in less than two years but expects that a possible shift to floating-rate aircraft leases might have an adverse impact due to higher interest rates.
The low-cost airline has filed draft papers for an initial share sale worth Rs 3,600 crore and will be the first domestic scheduled carrier to get listed on domestic bourses in nearly six years.
Apart from the prospects of moving to floating-rate leases for new planes, issues related to brand 'GoAir' and certain related trademarks, and indebtedness, are among the risk factors mentioned in its Draft Red Herring Prospectus (DRHP).
All its 55 planes as of March 31, 2021, were under operating and fixed-rate leases but the airline anticipates that future leases could be based on floating rates.
The airline, which announced rebranding itself from 'GoAir' to 'Go First', expects to add eight new aircraft in fiscal 2022 and 14 in the next financial year ending March 31, 2023. These planes will be part of the order placed for 98 A320 neos. Currently, the carrier's fleet has a mix of A320 neos and A320 ceos.
While noting that its indebtedness could adversely affect its business, Go Airlines said that it might be required to switch over to floating-rate leases for planes in the future.
16/05/21 PTI/Economic Times
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