Winning Bizness Desk

Mumbai. The owner of the loss-making airline Go First Wadia Group, popularly known as budget airlines, is preparing to take a big step. The insiders in the company have said that the Group is reportedly considering selling a major stake in Go First or exiting completely. Similar talks are also going on from the Wadia group. According to a report, the Go First airline has faced its biggest financial loss ever in the financial year 2022. The airline has been facing operational issues for the past few months. Half of GoFirst's flights have been grounded due to supply chain issues. In the last few months, the airline has suffered huge losses in business.

Group has invested around Rs 3,000 in recent months

According to sources, "GoFirst had initially taken a loan of Rs 600 crore under the government's Emergency Credit Line Guarantee Scheme (ECLGS). Besides, the Wadia Group has invested around Rs 3,000 crore in the airline in the last 15 months. "We are spending money on our grounded aircraft," an official said, adding that the group has spent Rs 3,000 crore in the last 15 months to keep the airline running."

All options looked into

A top official said, "All options have been considered and several scenarios have been planned. Exiting the airline business would be the last option. Another official said, "Due to engine supply issues, around 60 percent of GoFirst planes are on the ground, making the airline's There is a huge loss." As the airline was unable to raise funds from the primary market, the company postponed the IPO. GoFirst filed a Draft Red Herring Prospectus (DRHP) in May 2021. The company planned to raise Rs 3,600 crore through the IPO.