Go Air plans to launch Go Cargo and Go Ground

Go Air to launch Go Cargo and Go Ground, a new cargo division and a ground-handling division, respectively.

29 May, 2007:

Go Air, the low-cost carrier, promoted by the Wadia group, plans to start two new projects in the second half of 2007.

Reports quoting its managing director Jeh Wadia said that the proposed new entities would be Go Cargo and Go Ground. While Go Cargo would provide cargo-related services, Go Ground would concern itself with ground-handling services, he said.

Besides, Go Air is also considering proposals from various investors who wished to pick up a stake in the airline. It is learnt that the airline has received proposals from high net worth individuals and foreign institutional investors who wished to pick up a stake in the airline.

While Go Air may not be offloading any stake, several HNI, FII and also strategic investors, some of whom have experience in the aviation sector, are said to have shown an interest in the airline. The various offers are for picking up between 26 and 45 per cent stake. Even as the proposals are being examined, Go Air is clear that the management of the airline will remain with the Wadia group. The company boss, however, declined to speculate on the amount of money that he intended to raise through these investors, or the names of individuals and parties interested in the airline.

Go Air’s tie-up with Singapore Airline Engineering Company, for the maintenance, repair and overhaul (MRO) of aircraft, would become functional by July this year.

According to Wadia, the operation would initially offer services in 13 domestic cities. The decision to invest in these support services was probably a good one as this would help reduce our costs, he was quoted as saying.