Go First, an Indian airline, announced that it will stop flights on May 4 and 5 due to a severe funds shortage. The airline stated that it is not receiving spare engines from US firm Pratt & Whitney (P&W), and as a result, only 50% of the airline’s fleet is operational. The airline had to ground 25 aircraft or 50% of its Airbus A320neo fleet due to the “ever-increasing number of failing engines supplied by P&W International Aero Engines,” the company said in a statement. Go First’s market share fell from 10.8% in fiscal 2021 to 8% in fiscal 2023. The carrier, owned by the Wadia Group, has also filed for insolvency before the National Company Law Tribunal in Delhi. The airline employs over 5,000 people. Go First’s promoters added substantial funds up to ₹ 3,200 crore into the airline in the past three years. Of this, ₹ 2,400 crore was injected in the past 24 months, and ₹ 290 crore in April this year alone. All these bring the total promoter investment in the airline since its inception to approximately ₹ 6,500 crore.
According to the news article, the promoters of Go First airline have invested a total of approximately ₹6,500 crore since the airline’s inception. Out of this, ₹3,200 crore was invested Go First’s promoters added substantial funds up to ₹ 3,200 crore into the airline in the past three years. Of this, ₹ 2,400 crore was injected in the past 24 months, and ₹ 290 crore in April this year alone. All these bring the total promoter investment in the airline since its inception to approximately ₹ 6,500 crore. It seems that Go First’s promoters have been actively investing in the airline, injecting significant amounts of funds over the past few years. The recent injection of ₹290 crore in April 2023 brings the total promoter investment in the airline to around ₹6,500 crore since its inception. This is a considerable amount of investment and shows the promoters’ commitment to the growth and success of the airline. With these funds, Go First may have the resources to expand its operations, improve its services, and invest in new technology and infrastructure to enhance the customer experience.
