Budget airlines GoFirst has declared itself bankrupt.Image Credit source: File Photo
The condition of budget airlines GoFirst, which provides cheap air travel facility, is no longer even able to meet its own expenses. The company has declared itself bankrupt. Along with this, has also applied for bankruptcy process in NCLT. Meanwhile, the big thing is that who will handle the earthquake that will come in the market due to the closure of GoFirst?
GoFirst currently operates more than 200 daily flights with 61 aircraft. In this, about 28 destinations are within India, while 10 destinations are also international. With this, the number of employees of the company is more than 5000.
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In the event of the closure of GoFirst, there are now 4 major players left in the aviation market of India. The operation of the closed Jet Airways was to start this year, but it has not started yet. At the same time, the CEO of the company has also been shown the way out recently. Apart from this, the condition of SpiceJet is already bad, while Akasa Air is the newest company to enter the market.
In this way, apart from Indigo and Air India, no other company seems to be a strong contender to buy GoFirst. Both the companies have recently presented a big plan for their expansion. In this Air India is going to buy 470 new aircraft. Apart from this, the company is also recruiting about 500 new cabin crew and pilots every month.
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While Indigo has ordered about 500 new aircraft. Its fleet is made up of Airbus aircraft just like GoFirst. In terms of market share in 2023, IndiGo is the leader in India’s aviation market with 57 percent, while Air India is second with 25 percent.
Go First’s market share was 10 percent in 2020, which has now come down to 7 percent. SpiceJet has come down from 16 percent to 6 percent. Whereas Akasa has acquired 3 percent stake by starting 3 operations this year.
more than half the aircraft on the ground
Although Go First has told the biggest reason for its bankruptcy is the bad engine of Pratt & Whitney. Due to these engines, at present, more than 50 percent of the company’s air crafts are not capable of flying. In December 2019, only 7 percent of the company’s total aircraft were standing on the ground. By December 2020, this number increased to 31 percent and in December 2022 it reached near 50 percent.
In this way, about 30 aircraft of the company are not able to fly at all. Because of this, services on many routes of the company are being disrupted for a long time. However, despite this, the company had planned to operate 1,538 flights every week in the summer season of the aviation sector this year, which is 40 less than last year. This season started on 26 March and was to run till 28 October.