Upon announcing that GoAir would be rebranded as Go First in 2021, the majority contended that the company was planning to launch something new. It felt like they were hitting the reset button by introducing a new name, fresh look, and a new game plan to take on the big players in India’s crowded airline market.
However, just two years later, out of nowhere, Go First announced it was filing for bankruptcy. That caught everyone off guard. Regular travellers were confused, and industry folks started asking, “What happened here? How did they go from growing to crashing so quickly?” In this article, we will explore how GoAir got started, why they changed their name to Go First, and why they suddenly went bankrupt, the real reasons that led to the bankruptcy.
The Rise of GoAir: A Promising Start
GoAir to Go First: The Story Behind the Rebrand
Vision vs. Reality: Challenges and Setbacks
Behind Go First’s Bankruptcy: The Key Reasons for Its Downfall
When Engines Fail: The Hidden Crisis Behind Go First’s Collapse?
The Broader Impact on India’s Aviation Sector
Market Shake-Up: Who Benefits and What It Means for Fares
Lessons Learned and Industry Impact
The Rise of GoAir: A Promising Start
GoAir quickly made its mark in India’s rapidly growing low-cost carrier (LCC) segment, which was founded in 2005 by the Wadia Group. By focusing on affordable fares, reliable on-time performance, and steadily expanding its domestic network, GoAir built a loyal customer base. Through the 2010s, it grew steadily and positioned itself as one of India’s top budget airlines, competing alongside SpiceJet and IndiGo.
What set GoAir apart was not just competitive pricing but also an emphasis on customer service, which helped it differentiate in a crowded market. For many years, the airline was viewed as a strong contender in India’s price-sensitive aviation landscape, and industry experts remained optimistic about its growth prospects.
GoAir to Go First: The Story Behind the Rebrand
In 2021, GoAir rebranded itself as Go First, seeking more than just a new name; it was a move to present a modern, customer-focused image and mark a fresh beginning for the airline. The leadership aimed to expand its fleet, introduce newer aircraft models, and increase both domestic and international operations.
The name “Go First” was given to fulfill a promise of priority and better service. Marketing campaigns pushed this narrative, and initial customer reactions were positive. However, beneath the polished branding, several operational and financial challenges were mounting.
Kinnary Nensee
Slow and Steady: The Growth Strategy
GoAir didn’t grow fast. Starting with just two leased planes, it took years to reach a modest fleet size. By 2015, it had about a dozen aircraft and roughly 8% market share, far behind competitors like IndiGo, which had grown aggressively.
Jeh openly accepted this slow growth approach. His philosophy was simple: “Stay small until the customer has a need, not a want.” He believed in cautious expansion, maintaining profitability over rapid fleet acquisition. While rivals rushed to add aircraft and destinations, GoAir focused on efficiency and sustainability.
This strategy kept GoAir afloat when many other airlines, including Kingfisher and Deccan, disappeared. But it also meant that GoAir never became a dominant player in the market.
Vision vs. Reality: Challenges and Setbacks
In 2019, GoAir made a bold move by opening nine international routes and planning to add one plane per month, aiming for a 100-aircraft fleet by 2025-26. Unfortunately, the pandemic struck soon after, derailing these expansion plans and forcing the airline to rethink its future.
Jeh’s leadership also faced internal struggles. In 2021, he resigned amid a highly publicized dispute over the airline’s trademarks and branding. The company rebranded as Go First following this conflict, marking the end of an era.
Frequent management changes, with nine CEOs over its lifetime, also hurt Go First’s ability to scale up. Industry experts note that such instability prevented the airline from achieving the growth and economies of scale needed to thrive.
Behind Go First’s Bankruptcy: The Key Reasons for Its Downfall
- Poor Financial Planning: Go First took on heavy debt to fund fleet upgrades and expansion plans. Without steady revenue growth, servicing this debt became untenable. The pandemic accelerated cash burn, leaving Go First financially exposed.
- Delays in Aircraft Deliveries: The failure to get timely aircraft deliveries indicated lower operational capacity, frequent cancellations, and reputational damage. This disrupted planned growth and revenue targets.
- Ineffective Crisis Management: The airline’s response to the pandemic and subsequent financial distress lacked agility. There were delays in cost-cutting measures and no clear communication strategy, causing employee unrest and customer dissatisfaction.
- Intense Market Competition: Competing against larger, more financially stable players like IndiGo was a major challenge. Price wars and capacity expansions by rivals squeezed Go First’s margins.
- Management Decisions: Strategic missteps, such as aggressive expansion without secured resources and inadequate contingency planning, contributed to the downfall.
Sakshi Jadhav
When Engines Fail: The Hidden Crisis Behind Go First’s Collapse?
While many airlines fail due to financial issues or management problems, Go First faced a major problem of faulty engines. The Pratt & Whitney engines kept breaking down, and repairs dragged on, forcing the airline to ground around 25 planes. This resulted in a massive loss of INR 108 billion (roughly $1.3 billion) in revenue.
Despite their efforts to secure spare engines and parts, shortages and delays kept piling up. This strained their cash flow, making it difficult to cover everyday expenses such as fuel and lease payments.
The Broader Impact on India’s Aviation Sector
Go First was India’s fifth-largest airline by scheduled departures, and its collapse signals deeper issues within the country’s aviation market. India has one of the world’s fastest-growing domestic air travel markets, with passenger numbers expected to reach 350 million by 2030. Yet the industry remains fragile, with multiple airlines struggling due to high competition, rising fuel costs, and heavy debt burdens.
Go First’s failure is unique because it stems from supply chain and technical issues rather than purely financial mismanagement. This contrasts with past collapses such as Jet Airways and Kingfisher Airlines, which failed due to financial and operational challenges.
Other airlines such as IndiGo and SpiceJet are also grappling with similar engine problems, having grounded multiple aircraft. However, IndiGo’s larger and more diverse fleet helps it better absorb the shock.
Market Shake-Up: Who Benefits and What It Means for Fares
With Go First’s exit, major competitors like IndiGo, Air India, SpiceJet, and even newer players like Akasa Air stand to gain market share. But this shift may come at a cost to passengers. Experts predict ticket prices on former Go First routes could surge by 50-60% over the coming months, as fewer airlines vie for the same passengers.
This shortage of capacity, combined with rising operational costs, means some budget-friendly options in the short term. Airlines will have to balance meeting strong demand with maintaining profitability amid ongoing supply chain challenges.
Lessons Learned and Industry Impact
Go First’s bankruptcy underscores the precarious nature of India’s aviation sector, especially for low-cost carriers trying to scale rapidly. The airline’s failure highlights the critical importance of:
- Prudent financial management, especially debt control
- Flexible and timely operational strategies during crises
- Realistic growth planning aligned with available resources
- Transparent communication with stakeholders during hardships
The bankruptcy has sent ripples across the Indian aviation market. Investors are now more cautious, and other carriers are re-evaluating their expansion plans in light of Go First’s experience. It remains a cautionary tale of how even promising companies can falter without solid foundations.
Conclusion
Go First’s story is a mix of ambition, careful strategy, personal vision, and harsh realities. It shows that in India’s competitive aviation space, slow and steady growth isn’t always enough to survive. Leadership stability, aggressive scaling, and adapting to rapid market changes are crucial. Although Go First’s dream didn’t fully take flight, Jeh Wadia’s efforts kept it going longer than many others, leaving behind lessons for future airline ventures in India’s ever-changing skies.
Lakshya Singh
FAQs
What was GoAir and why did it change its name to Go First?
GoAir was a low-cost airline launched in 2005 by the Wadia Group. In 2021, it rebranded as Go First to present a modern, customer-focused image, expand its fleet, and increase domestic and international routes.
When did Go First file for bankruptcy?
Go First announced its bankruptcy filing in May 2023, just two years after rebranding from GoAir, surprising both regular travellers and industry experts.
Who were Go First’s main competitors in the Indian aviation market?
Go First competed with major airlines such as IndiGo, SpiceJet, Air India, and newer entrants like Akasa Air in India’s crowded low-cost carrier segment.
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