Tata and IndiGo in Race to Acquire Go First’s Aviation Assets: Report

Mumbai, May 10, 2023 – In a bid to expand their foothold in the Indian aviation market, Tata Sons and IndiGo Airlines are reportedly engaged in a competitive race to acquire the aviation assets of Go First, previously known as GoAir. According to a recent report, both conglomerates are actively pursuing negotiations to secure a deal that would strengthen their respective positions in the rapidly growing airline industry.

Go First, a low-cost carrier based in India, has been facing financial challenges in recent years due to intense competition and the impact of the COVID-19 pandemic on air travel. Seeking to restructure its operations and optimize its resources, Go First initiated discussions with potential buyers to divest its aviation assets.

Tata Sons, the parent company of India’s largest full-service carrier, Vistara, and a major shareholder in AirAsia India, sees the acquisition as an opportunity to bolster its position in the budget airline segment. The Tata Group has a rich history in the aviation industry, with the establishment of Air India in the 1930s and subsequent contributions to the sector. Acquiring Go First’s assets would enable Tata Sons to enhance its market share and expand its customer base.

On the other hand, IndiGo Airlines, the largest carrier in India by passengers carried and fleet size, is also keen on acquiring Go First’s assets. With its dominant presence in the domestic market, IndiGo aims to further consolidate its position by leveraging the synergies between its existing operations and the potential acquisition. By adding Go First’s assets, IndiGo would be able to tap into a wider customer base and strengthen its low-cost carrier portfolio.

Although specific details of the negotiations have not been disclosed, sources close to the matter indicate that both Tata Sons and IndiGo are actively engaged in due diligence and financial assessments of Go First. The final decision will likely depend on various factors, including the terms of the deal, regulatory approvals, and the ability to navigate through the challenges posed by the pandemic.

Industry experts suggest that the acquisition of Go First’s aviation assets by either Tata Sons or IndiGo could have a significant impact on the Indian aviation landscape. The consolidation of resources and networks would create a more competitive environment, potentially leading to increased efficiencies and improved customer experiences. It would also allow the acquiring company to better navigate the current industry challenges and position themselves for future growth.

As the negotiations between Tata Sons, IndiGo, and Go First continue, all parties involved are aware of the importance of securing a deal that aligns with their strategic objectives. The outcome of this race to acquire Go First’s aviation assets will not only shape the future of the companies involved but also impact the dynamics of the Indian aviation sector as a whole.