GoAir plans to add new routes as it prepares for an initial public offering (IPO). While the IPO size could not be ascertained, a media report today pegged it at around Rs 4,000 crore.
The airline has a fleet of 53 Airbus A320 aircraft and it operates only 37 of them at present. A senior executive said new routes are under evaluation but the airline is already selling flights to new destinations such as Amritsar, Dehradun and Surat on online portals.
The route expansion comes ahead of a possible IPO. The airline is also strengthening its management and is looking to hire senior executives in finance, sales and network management roles.
Industry sources said the airline is working on listing plans and has hired merchant bankers and law firms for the share sale. A final decision, though, would be taken by the Wadia group which owns the airline.
A report by CNBC TV-18 said that draft red herring prospectus is likely to be filed next month and the promoters will dilute 25 per cent stake to raise Rs 3500-4000 crore through fresh issuance of shares. The airline did not respond to a query on its listing plan.
While the airline has been looking to raise capital via share sale for past several years, its latest efforts come at a time when aviation industry is facing crisis due to Covid-19 disruption. An India Ratings report last October had said the airline’s revenue from operations are likely to suffer in FY 2021 due to a sharp decrease in passenger traffic due to two month suspension of operations and government imposed travel restrictions.
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