Go Airlines Ltd owner Wadia Group is completely committed to the airline and had no plans to exit it, the airline’s chief executive told Reuters in an interview on Wednesday. His comments came a day after the cash-strapped Indian airline filed for bankruptcy, blaming “faulty” Pratt & Whitney engines for the grounding of about half its fleet.
Boon for rivals Go First’s bankruptcy may boost airfares in India and give other domestic airlines a chance to grab a larger chunk of the market share, analysts said. Share prices of India’s largest airline, IndiGo, were up 5.1% on Wednesday, after rising as much as 8.2% earlier. “If the suspension is prolonged, other airlines that are adding capacity would look to avail the slots vacated by Go First and grab onto the market share,” Jefferies analyst Prateek Kumar said in a client note.