Wadia Group in talks to sell stake or exit Indian airline Go First
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Indian conglomerate Wadia Group is in talks with strategic partners to either sell a majority stake in loss-making budget airline Go First or completely exit it, the Economics Times reported on Monday, citing sources close to the development.
Go First posted its biggest annual loss in fiscal 2022 and has been facing operational problems in the last few months as half of its aircraft were grounded due to supply chain disruptions related to Pratt & Whitney (P&W) jet engines, the report said.
The Wadia group, which runs companies including textiles maker Bombay Dying & Manufacturing Co Ltd, is reluctant to invest more until the issue with P&W is resolved, after infusing around 30 billion rupees ($366.2 million) in the last 15 months to keep the airline afloat, the sources said.
Go First and Wadia Group did not immediately respond to Reuters' requests for comment.
The no-frills airline lost market share in February even amid a domestic air traffic boom, according to latest available official data.
The airline had filed papers for an initial public offering in May 2021, but coronavirus outbreaks and the P&W engine issues hindered its plans, ET said.
($1 = 81.9270 Indian rupees)
