Thursday, June 08, 2023

IndiGo reacts to reports of acquiring majority stake in Go First

Indian low-cost carrier IndiGo Airlines has responded to reports on Indigo considering an acquisition of a majority stake in ultra-low-cost airline Go First. The airline neither confirmed nor denied the reports of IndiGo merging with debt-ridden Wadia Group-backed GoFirst, the airline clearly stated that it does not comment on market speculation.

Responding exclusively to CNBC-TV18 IndiGo said, "IndiGo is aware about certain media reports stating that IndiGo has expressed an interest in GoFirst." Further, the airline said, "IndiGo does not comment on market speculation and remains focussed on its growth strategy." Go First did not reply to CNBC TV18's query.

According to a report by a Gujarati daily, IndiGo is considering merging GoFirst and several meetings have taken place till now. The report further stated that it could take up to five years for the merger to get completed. The report also highlighted that the current fleet of both airlines is similar.

Go First which ceased operations on May 3, blamed Pratt & Whitney for the current situation with more than half of its fleet being grounded due to engine supply delays. IndiGo also has around 37 airplanes that are grounded due to P&W engine issues.

GoFirst has extended flight cancellations till 12th June and is currently in conversation with the government regarding its turnaround plan.

08/06/2023 Daanish Anand/CNBC TV18

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