NEW DELHI: No-frills carrier GoAir has rebranded itself as ‘Go First’ ahead of its proposed initial public offering (IPO). There is a strong buzz in the market that the Covid-19-hit airline will soon file its paper for an initial share sale to raise funds for its expansion plans.
On Thursday, GoAir said that the purpose of the revamp is to fully embrace the ultra-low-cost airline model to gain an advantage over its peers. The airline is aiming at young travellers with the rebrand.
“With the youngest average fleet among Indian LCC carriers, majority of which are A320 Neos, high-density seating, single aircraft type across its fleet, Go First is positioned to get ahead of its peer group by operating with ultra-low-cost. And it is this competitive advantage that enables it to offer its customers a combination of ultra-competitive fares and a safe flying experience” the airline said in a statement.
An ultra-low cost carrier (ULCC) generally follows a very tight business model that results in lower ticket prices. Unlike a low cost carrier (LCC) such as IndiGo and SpiceJet, ULCCs have fewer amenities and most services come with a fee. “Even as the times continue to be extraordinary, Go First sees opportunities ahead. This rebranding reflects our confidence in the brighter tomorrow. The Go First Team will strive to deliver the brand and make “You Come First” a reality,” said Kaushik Khona, CEO, Go First.
The rebranding comes at a time when the air passenger traffic in India has nosedived in the last one month due to second wave of infections, wiping out all possibilities of a recovery in near future. The impact of the second wave on the sector is such that there are speculations of a mass consolidation. Experts believe that except cash-rich IndiGo and Tata Group-Singapore International Airlines-backed Vistara, other players will have a hard time to survive this phase.
GoAir started operations in 2005 and had a 7.8 market share per cent in March 2021. Jeh Wadia, son of chairman Nusli Wadia had recently stepped down as its managing director and industry veteran Ben Baldanza, who once headed USA’s Spirit Airlines, was roped in as vice-chairman.
Expansion drive intact amid Covid-19
GoAir has been on course to raise funds to fuel its expansion. With its latest transformation, the airline is targeting the most price-sensitive leisure travellers.