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Let us now look at a few competitive strengths and strategies of Go Airlines (India) Limited

Competitive Strengths

+ Simple, Fuel-Efficient, and Next Generation Fleet: Go Airlines is consistent with its Ultra Low-Cost Carrier (ULCC) model for operating its airline. The company employs a single aircraft type across its entire fleet (Source: CAPA Report). Its current A320 fleet consists entirely of sisterships with a single airframe and engine type. Its entire fleet is fitted with the lightest and most cost-efficient Buyer Furnished Equipment options. All of its aircraft have high-density seating with a seating capacity of 186 passengers for the NEO aircraft and 180 passengers for the CEO aircraft. The company offers a single class of service, which allows its A320 aircraft to have the maximum seating capacity. 82% of its fleet consists of NEO aircraft (as of February 10, 2021) and it expects that its entire fleet will consist of NEO aircraft by the end of fiscal 2024. Go Airlines has the highest percentage of next generation aircraft in its fleet compared to other Indian airlines (Source: CAPA Report). Having a uniform fleet also allows them to use any aircraft for any route, thereby simplifying and increasing the flexibility of its flight scheduling arrangements. This uniformity lowers costs by allowing them to have common maintenance procedures, training and spare-part inventories.

+ Strong Focus on Operational Efficiency and Reliability: Go Airlines have demonstrated high operational efficiency while continuing to demonstrate high operational reliability. In fiscal 2020, the company had the third highest aircraft utilization of 12.9 hours per day in India (Source: CAPA Report). It also had the second highest load factor during fiscal 2020 (Source: CAPA Report). The company maintains high utilization of its aircraft through efficient schedule management. For fiscal years 2018, 2019 and 2020, its average aircraft utilization in domestic operations for each day was 13.7 hours, 12.9 hours, and 12.9 hours, respectively. Go Airlines were the market leaders for on-time performance during the 15 months ended November 2019, as well as for the least flight cancellations in India at 0.3% during fiscal 2021 and had the lowest customer complaints at 0.3 per 10,000 passengers against an industry average of 1.0 during fiscal 2021 (Source: CAPA Report).

+ Established Position in Slot-Constrained Airports, With Best in Class Efficiency: Go Airline's market share in India has increased from 5.4% in fiscal 2010 to 10.8% in fiscal 2020. In fiscal 2020, the company established a market share of 14% in Mumbai, 12% in New Delhi, 14% in Pune, 25% in Ahmedabad, and 14% in Goa, which are among the top 10 airports in India (Source: CAPA Report). The company has a strategic network that serves slot-constrained major markets and can adapt dynamically to changing market conditions. Its network allows them the flexibility to redeploy its fleet from low-demand routes and markets to stable or high-demand routes and markets at a particular point in time. The company also bases its aircraft at airports that have high potential for passenger demand. In selecting destinations for international expansion, it targets routes which offer a high density of passengers per sector and attractive yields. To reduce the costs of parking its aircraft overnight, the company has focused its international operations on flights which return on the same day.

+ Selling Experiences for the Young Indian leisure and MSME Traveller: Go Airlines' customer acquisition strategy is targeted towards the growing number of leisure customers and Micro, Small & Medium Enterprises (MSME) business travellers in India. As a result of its widespread network across India, the company believes that it is uniquely tailored to serve these categories of Indian leisure and business customers. It categorizes its customers into leisure and business travellers. Its marketing efforts for leisure travellers are focused on the under-45 age group, which is the largest component of the Indian population (Source: CAPA Report). For MSME business travellers, the company leverages the point to point connectivity and same-day travel features of its route to attract and retain customers. It aims to maintain its market share in metro-metro routes while increasing its market share in non-metro to metro and non-metro to non-metro routes. Go Airlines total passenger volume for fiscal 2018, 2019 and 2020 and the nine months ended December 31, 2020 was 10.8 million, 12.7 million, 16.2 million and 2.4 million, respectively (Source: CAPA Report).

+ Demonstrated Track Record of Growth Across Key Performance Indicators: As a result of the company's disciplined execution of its ULCC business model, its passenger revenue has grown at a compound annual growth rate (CAGR) of 24.8 % from fiscal 2018 to fiscal 2020 and its Operating Revenue has grown at a CAGR of 25.2% in the same period. Its ASK grew at a CAGR of 30.2% between fiscal 2018 and fiscal 2020. Go Airlines's Available Seat Kilometer (ASK) CAGR growth was the highest compared to Spicejet and Indigo (Source: SAP Report). Also, its Cost per Available Seat Kilometer (CASK) grew at a CAGR of 7.2% in the same period. Its CASK CAGR growth was the lowest compared to Spicejet and Indigo (Source: SAP Report). The company's passenger revenue also grew at a CAGR of 24.8% between fiscal 2018 and fiscal 2020. Go Airlines also have demonstrated competitive cost metrics with potential for further efficiencies. In fiscal 2020, its Operating CASK, Fuel CASK, Maintenance CASK and Employee Benefits CASK were all lower than Spicejet and Indigo (Source: SAP Report).