Go Air considering IPO option, says MD
It is one of the smallest players in the Indian aviation space, with a 7.6 percent market share and that is its biggest advantage as it helps it adapt to fluctuations in the aviation space, says Go Air managing director Jeh Wadia.
It is one of the smallest players in the Indian aviation space, with a 7.6 percent market share and that is its biggest advantage as it helps it adapt to fluctuations in the aviation space, Go Air's managing director Jeh Wadia told CNBC-TV18.
Wadia admits Go Air is a David amongst the Goliaths of the Indian aviation space. But, that's not stopping Wadia from dreaming big. For starters, he hopes the government will give Go Air a waiver to fly international routes despite falling short of the 20-aircraft requirement.
The MD also feels the airline is an ideal candidate for FDI investment, given its domestic connectivity and on-time track record. But he insists that the airline is fully capitalized and such strategic investment would only go towards improving service quality, market reach and customer engagement. An IPO is also on the anvil.
Wadia said, "We are always open minded about going for IPO. Right now we feel it is more important to have strategic investments and the IPO will depend on market conditions."
Go Air which flies over 200 flights a day, is ramping up fleet size and it should help cover near-shore international routes once the government approval comes in. The airline has already met initial payment commitments towards an order of 72 aircrafts.
International clearance apart, Wadia says the need of the hour is for the government to provide a better environment for the sector, from rationalizing taxes on ATF to allowing services like engineering, ground handling and security to be outsourced, thus enabling lower operational costs.