The owners of Go First, India’s budget carrier have begun talks with strategic partners to either sell a stake in the airline to completely exit the airline business, according to a report by Economic Times.
The airline reported its first annual financial loss till date in FY22. In FY23 the airline took two loans worth INR 2.03 bn under the Indian Government’s Emergency Credit Line Guarantee Scheme to deal with its cash crunch.
Apart from the financial crisis, the airline is also undergoing operational issues with majority of its fleet grounded due to engine issues and lack of spare from Pratt and Whitney. The airline is currently in talks with Pratt & Whitney to provide replacement engines or compensation for the losses.
The airline was also planning to launch its initial public offer (IPO) earlier in 2021 but it got delayed due to the Covid-19 pandemic. Go First filed the draft red herring prospectus (DRHP) in May 2021 to raise Rs 3,600 crore. It received the regulator's nod in August 2021. However, the approval expired on August 26, 2022.
Meanwhile, back in 2018 the airline promoters had appointed a UK-based merchant bank to gauge buyers’ interest in the airline and be the transaction adviser for the deal if it materialises.