GoAir Rebrands As Go First, Becomes Ultra Low-Cost Carrier (ULCC); Ahead of IPO

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Wadia Group-owned low-cost carrier GoAir rebrands itself as Go First after 15 years of flying, the announcement comes ahead of its proposed initial public offering (IPO).

As per the CNBC reports, GoAir is likely to file IPO this week to raise ₹3,600 crores and as per the sources IPO could be a fresh issue and there may not be any OFS (Offer for Sale)

“GoAir is now Go First! Whether it’s your safety, your time, or your comfort – at Go First you always come first! Experience the benefits of the next gen fleet, at ultra-low-cost fares, so your travel plans are never hampered. We hope to see you on board soon!”

GoAir announced from its Twitter account.

According to GoAir, the purpose of rebranding is to operate the carrier in an ultra-low-cost airline model, which would give it a competitive advantage over its peers.

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The Go First as ULCC (ultra-low-cost carrier) would operate a single aircraft type across its fleet, which currently has both Airbus A320 and A320Neos (new engine option) planes in operation, GoAir said in a statement on Thursday.

An ultra-low-cost carrier (ULCC) is different from a low-cost carrier (LCC) as they typically operate different business models with unbundled fares which result in cheaper ticket prices.

For instance, on a ULCC, passengers have to pay extra for baggage, while a selection of seats and food are subject to an additional fee. ULCCs also have fewer amenities than simple low-cost carriers, and therefore have a greater range of add-ons for a fee.

Most Indian airlines like IndiGo, SpiceJet and AirAsia India operate on a low cost model.

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“Consumers in India are hugely value-conscious but are quite demanding when it comes to the flying experience,” said the airline’s vice chairman Ben Baldanza.

“The combinations of attractive airfares, a squeaky-clean flying experience, well-sanitized flights, and on-time performance is what Go First is designed to deliver,” he added.

What Is An Ultra-Low-Cost Carrier (ULCC)?

An ultra-low-cost carrier(ULCC) is an airline that operates with a low-cost business model and having minimal inclusions in the fare and a greater number of add-on fees so the customers can get tickets at a much lower cost in comparison to low-cost airlines.

(With Inputs From PTI)

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