IndiGo Responds to Reports of Acquiring Majority Stake in Go First

IndiGo Responds to Reports of Acquiring Majority Stake in Go First

Written by Sanjay Kumar

News Highlights

• IndiGo Airlines neither confirmed nor denied merger reports with Go First, stating no comments on speculation.
• Go First blames Pratt & Whitney for fleet grounding, extends flight cancellations till June 12.
• IndiGo, India’s largest airline, reports a profit jump in Q4 and continues receiving new aircraft for growth.

In response to recent reports, IndiGo Airline, an Indian low-cost carrier, has addressed the speculation surrounding its potential acquisition of a majority stake in Go First, an ultra-low-cost airline. While the airline neither confirmed nor denied the merger rumors with Go First, which is backed by the debt-ridden Wadia Group, it made it clear that it refrains from commenting on market speculation.

In an exclusive response to CNBC-TV18, IndiGo stated, “IndiGo is aware of certain media reports stating that IndiGo has expressed an interest in Go First.” The airline further emphasized, “IndiGo does not comment on market speculation and remains focused on its growth strategy.” CNBC TV18’s query to Go First went unanswered.

According to a report from a Gujarati daily, IndiGo is contemplating the merger with Go First, and multiple meetings have already taken place. The report also mentioned that completing the merger could potentially take up to five years while highlighting the similarity in the current fleets of both airlines.

Go First, which ceased operations on May 3, attributed its current situation to Pratt & Whitney, citing engine supply delays as the reason for grounding over half of its fleet. IndiGo is also grappling with P&W engine issues, resulting in approximately 37 of its airplanes being grounded.

Go First has extended flight cancellations till June 12 and is presently engaged in discussions with the government regarding its turnaround plan.

With the largest market share and fleet size in the country, IndiGo maintains its dominant position in the airline industry. The company recently announced its Q4 results, revealing a profit of INR 919 crore, accompanied by a significant 76.5 percent increase in revenue. IndiGo continues to receive a minimum of two aircraft per month as part of its existing order placement.

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