Go First and SpiceJet started flight operations in 2005, followed by the market leader, IndiGo, in 2006. As of 2022, IndiGo holds the largest share of the domestic market at 56.1%, followed by Vistara at 9.2%, Go First at 8.8%, and Air India and SpiceJet tied at 8.7% each.

“The shutdown of air travel and resultant weak travel sentiment during 2020-21 has had a more severe impact on the airlines which did not have enough liquidity to deal with long periods of low revenue environment. Clearly, SpiceJet and Go First have been affected and need fund infusion to maintain course,” an industry executive said, requesting anonymity.

Supply chain challenges further compounded their struggles last year, leading to delayed delivery of engines and aircraft parts. Go First, for example, only received its 55th fuel-efficient Airbus A320neo aircraft after a delay of almost one-and-a-half months. Despite having a fleet of 60 planes, including 5 Airbus 320ceos, 20-25 of its planes were grounded in the last three months due to engine and parts shortages.

“Pratt & Whitney had provided 17 serviceable engines in December, and we could make eight aircraft serviceable. Similarly, we expect 20 serviceable engines by February-March,” said a Go First spokesperson. “We are in the process of taking delivery of eight new aircraft from Airbus from January to June, which will take the fleet to 68.”

The spokesperson said the airline would add a new aircraft in two days.

While Go First has so far availed loans of around ₹590 crore under the Emergency Credit Line Guarantee Scheme 3.0 (ECLGS), its proposed ₹3,600-crore initial public offering has been delayed. The airline is evaluating the opportunity for an IPO from time to time and will be ready to take steps, the spokesperson said.

SpiceJet has also been experiencing a host of issues, including delays in the induction of MAX aircraft and fundraising. The separation and stake sale in its profitable arm SpiceXpress has faced several hurdles.

“They are trying to raise capital by hiving off cargo and possibly raising funds from strategic and financial investors. Without funding, frankly, there is no game, and they realise it,” Kapil Kaul, chief executive and director of Centre for Aviation, said.

Out of its fleet of 68 aircraft, 25 have not been in operation for seven days, leaving an operational fleet of 43 planes. Lack of funds is also impacting the airline’s ability to expand operations. In January-November, SpiceJet flight departures stood at 82,512, down 47% from the same period in 2019, while for Go First, flight departures fell 22.5% to 66,740 flights. IndiGo departures in the same period were at 452,798 flights, up 6% from 2019. For Vistara, flight departures in the period were 48% more than in 2019, or pre-covid levels at 72,615 departures.

2023 will be a year of intense competition between IndiGo and the Tata-run Air India group airlines. However, the situation will be even more crucial for SpiceJet and Go First to accelerate their fund infusion process, an aviation industry analyst said, requesting anonymity.