In a bid to upgrade its existing fleet, IPO-bound Go First will induct 10 A320 NEO aircraft this year, followed by 10 more by December 2023. The Wadia-owned airline has plans to expand in South East Asia and Eastern Europe besides adding at least 10 codeshare and interlining agreements this fiscal.
“This will finish our first order. Post this, in 2024, we will start accepting deliveries of the aircraft order which was placed in 2016,” said a source close to the company.
This comes even as new airlines, including Akasa and Jet Airways, are set to launch services over the next few months.
According to a source, Go First is likely to start its process for the IPO in mid-June and open its issue in July. Amid the market scenario getting better, the company is focussing on a three-pronged model — cost reduction, expansion and fleet optimisation, the source added.
As part of its strategy, Go First will first retire old A320 CEOs by 2023. Currently, the airline has 52 aircraft in its fleet and over four are A320 CEOs. The company’s plan to retire these aircraft and inducting fuel-efficient A320 NEOs was derailed because of the pandemic.
Due to the current scenario, the airline has benefitted on lease rentals. “We have saved at least 8-9 per cent better lease rentals,” the person said.
28/05/22 Forum Gandhi/Business Line
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