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GO AIRLINES Company Details
Go Air is an ultra-low-cost carrier (“ULCC”) focused on maintaining low unit costs and delivering compelling value to customers that drives its unit revenues. It is one of the fastest growing airlines in India, with an increase in domestic market share from 8.8% in fiscal 2018 to 10.8% in fiscal 2020. Its target customers are young Indians and MSME businesses, and it believes its product and service offerings are uniquely attractive to these large and growing segments of the Indian population. The young urban and middleclass demographic in India constitutes a majority of the Indian population. More than 75% of the population in India is below the age of 45 years, of which approximately 35% lives in urban areas while the MSME businesses segment in India contributed 33.5% of the GVA of India.
As a ULCC, Go Air is focused on maintaining a low-cost base and high utilization of its modern and fuel-efficient fleet. As of February 10, 2021, its fleet inventory consisted of 56 aircraft, of which 46 aircraft were A320 NEO models and 10 were A320 CEO models. Of these 10 A320 CEOs, three were in the process of redelivery, which will further enhance the homogenous nature of its fleet. All its aircraft use the same airframe and are ‘sister’
ships with common configurations to reduce operational and maintenance costs. All its aircraft employ highdensity seating with a single cabin configuration. The average age of its aircraft was 3.7 years, which, according to CAPA, was the youngest average fleet age among Indian LCC carriers and one of the youngest fleets of any LCC globally. A320 NEOs are 17-20% more fuel-efficient than A320 CEOs and constitute 82% of its fleet size
(as of February 10, 2021). Its Operating CASK of 3.06, Fuel CASK of 1.27, Maintenance CASK of 0.60 and Employee Benefits CASK of 0.45 in fiscal 2020 are the lowest among LCCs in India.
Go Air currently has an order book of 98 A320 NEO aircraft and expects to take delivery of eight additional A320 NEOs, in fiscal 2022, 14 in fiscal 2023 and 14 in fiscal 2024. It expects to take deliveries of the balance aircraft from fiscal 2025 onwards. It has the highest percentage of next generation aircraft in our fleet in India. It expects that by the end of fiscal 2024, its fleet will solely comprise A320 NEO aircraft.
Go Air has benefited and expect to continue to benefit from the highly attractive industry dynamics that characterize the Indian aviation market.
According to CAPA, between fiscal 2010 and fiscal 2020, the domestic air travel passenger market in India has grown at a CAGR of 11.9% and the international air travel passenger market has grown at a CAGR of 6.8%. With very low seat capacity per capita, a low number of total airline passengers, a highly underpenetrated total fleet size and the ability to provide an alternative to lengthy rail travel, the Indian aviation market has grown from 76 million passengers in 2010 to 208 million passengers in 2020, which is the
fastest growing aviation market globally. It believes that it is uniquely positioned to
benefit from this expected growth in traffic due to its focus on: (i) leisure travellers within India; (ii) leisure travellers from India travelling overseas; (iii) MSME business travellers; (iv) route connectivity between Tier 2 and Tier 1 cities and Tier 2 and Tier 3 cities; and (v) frequency of flights between Tier 1 and Tier 2 cities.
Its passenger volume increased at a CAGR of 22.4% from 10.8 million passengers in fiscal 2018 to 16.2 million passengers in fiscal 2020. Its market share of domestic passenger volume increased from 8.8% in fiscal 2018 to 10.8% in fiscal 2020. Further, in the current fiscal year, it has added three new A320 NEOs to its network to support the expected growth in demand.
Its route network is designed to support operational efficiency and includes capacity in slot-constrained markets in India. As of January 31, 2020, Go Air covered a network of 28 domestic and nine international destinations. It has established strong positions in slot-constrained airports such as New Delhi, Mumbai, Ahmedabad and Pune,
with the second-best overall Slot Efficiency in India during the period from fiscal 2018 to fiscal 2020.
During the current fiscal year, Go Air leveraged its dynamic network to cater to the routes which have high demand potential. Accordingly, commencing from June 1, 2020, it has operated more than 600 international charters mainly focusing on repatriation flights for
passengers returning to India from various parts of the world, through December 2020.
Go Air has high aircraft utilization during fiscal 2020, with an average utilization of 12.9
hours per day with a high load factor of 88.9%.
Its focus on these parameters allowed it to achieve the best on-time performance among airlines in India for 15 consecutive months between September 2018 and November 2019, the least number of cancellations, at 0.3%, for fiscal 2021 as of January 31, 2021, and
the lowest number of customer complaints of 0.3 per 10,000 customers .We have received
several industry accolades and awards over the years, including awards for best cabin service in central Asia in 2020 and best seat comfort in central Asia in 2020
Some of the qualitative factors which form the basis for computing the Offer Price are:
• Simple, fuel-efficient and next generation fleet;
• Strong focus on operational efficiency and reliability;
• Established position in slot-constrained airports, with best in class efficiency;
• Selling experiences for the young Indian leisure and MSME travelers;
• Demonstrated track record of growth across key performance indicators; and
• Highly experienced Board and management team compliant with corporate governance and backed by the
For more study : www.goair.in
The promoters of GO AIRLINES
Nusli neville Wadia ,
Jehangir Nusli Wadia ,
Ness Nusli Wadia &
Go Investments & Trading Private limited
GO AIRLINES IPO Main Objects
The Company proposes to utilise the Net Proceeds towards funding of the following objects:
1. Prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by the Company;
2. Replacement of letter of credits, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircrafts, with cash deposit;
3. Repayment of dues to Indian Oil Corporation Limited, in part or full, for fuel supplied to the Company
GO AIRLINES IPO Details
IPO Opens on : ? 2021
IPO Closes on : ? 2021
Issue Type: Book Built Issue IPO
Offer for Sale Up to ? Equity Shares
IPO Size : up to Rs 3600.00 Crore
Face Value per share : Rs. 10
GO AIRLINES IPO Price Band Per Equity Share: Rs. ??
GO AIRLINES IPO Lot Size ? Shares
GO AIRLINES Listing will at BSE,NSE
Shares offered to
Anchors ? Shares = INR ? Crs
QIB ? Shares = INR ?Crs
NII ? Shares = INR ?Crs
RII ? Shares = INR ?Crs
Lot size: ? = ? Forms
GO AIRLINES IPO Tentative timeTable
Price Band announced
GO AIRLINES IPOAnchor List
GO AIRLINES IPO Opens on
GO AIRLINES IPO Closes on
GO AIRLINES IPO Allotment on
Unblocking of ASBA
Credit to Demat Accounts
GO AIRLINES Listing on
GO AIRLINES IPOLtd Financial Details :
Earnings per Share 2017-18 Rs (2.08)
Earnings per Share 2018-19 Rs (25.47)
Earnings per Share 2019-20 Rs (82.48)
Earnings per Share 2020-21,9M Rs (29.89)
Book Value of the Share as on 31.12.2020 Rs (124.50)
Return on Net Worth: 17-18 NA %
Return on Net Worth: 18-19 NA %
Return on Net Worth: 19-20 NA %
Return on Net Worth: 20-21,9M : NA %
Upper Price Band/last EPS: N.A.
Upper offer price/Book Value Ratio: N.A.
Equity Shares outstanding prior to the Offer 19,95,00,000 Equity Shares
Equity Shares outstanding after the Offer ? Equity Shares
GO AIRLINES IPO Peer Comparison:
Interglobe Aviation @ PE Multiple of N.A.
GO AIRLINES IPO Lead Managers
Citigroup Global Markets
Morgan Stanley India
Registrar to GO AIRLINES IPO
Link Intime India Private Limited
Registered Office of GO AIRLINES
C/O Britannia Industries Limited,
A-33, Lawrence Road Industrial Area,
New Delhi 110 035,
First Floor, C-1, Wadia International Centre,
Pandurang Budhkar Marg,
Worli, Mumbai 400 025,
Company Secretary and Compliance Officer
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