Jeh Wadia’s Journey: Building and Departing from Go First Airlines

When Jehangir Wadia, commonly known as Jeh, embarked on the journey of founding Go First airline at the young age of 32, skeptics viewed it as nothing more than a lavish plaything for the affluent scion. However, this venture represented a natural progression across generations. Almost three centuries earlier, Jeh’s ancestor Lovji Nusserwanjee Wadia had constructed ships and docks for the prestigious East India Company in Mumbai. Considering this lineage of pioneering shipbuilders, it was not entirely unexpected for a descendant to establish an airline in modern times. Nonetheless, after nearly two decades, the Wadia Group has unfortunately relinquished ownership of the airline, although their legacy endures through the ship that graces their logo. Today, Go First finds itself entangled in the throes of bankruptcy proceedings.

Go First attributes its current financial predicament to faulty engines manufactured by Pratt & Whitney, which resulted in the grounding of its aircraft and ultimately led to its bankruptcy.

Go Airlines

However, the airline’s turbulent history is not solely defined by this recent setback. It has endured internal conflicts, including discord between Jeh and his father, as well as Jeh’s dramatic departure from the company.

During the early 2000s, the Indian airline industry captivated the imagination of the country’s affluent population, allured by its glamour and opulence. However, Jeh’s attraction to aviation stemmed from a different source. Despite leading a luxurious and extravagant lifestyle like other wealthy kids in Mumbai, Jeh felt dissatisfied and yearned for something more meaningful. It was through an invitation from Nanaji Deshmukh, a revered figure in the Rashtriya Swayamsevak Sangh (RSS) and a distinguished social activist, that Jeh discovered his true calling. Having a close relationship with Jeh’s father, Nusli Wadia, Deshmukh extended an offer to Jeh to engage in social work in the rural areas of Chitrakoot, Uttar Pradesh. Embracing the opportunity, Jeh willingly accepted the proposition.

Initially, Jeh would travel from Mumbai to Delhi to Allahabad on a private jet and then embark on a road journey to reach Chitrakoot. However, the expenses associated with this mode of transportation were exorbitant, particularly due to the limited air connectivity during that time.

Eventually, Jeh decided to try traveling by train but found the experience unsatisfactory. Even in an air-conditioned seat, the basic facilities were far from satisfactory, leaving him disheartened. It was during this moment of realization that Jeh made a firm resolution to make a difference in the lives of others by establishing a low-cost airline that offered air travel at affordable prices akin to train fares. In 2005, Jeh launched Go Air, which later underwent a name change to Go First after a trademark dispute, a development that transpired 15 years after its inception, as Jeh secured the rights to the original name.

Growth

Go First initially began with the lease of two planes. After ten years, the airline had expanded its fleet to approximately a dozen planes and secured a market share of around 8%. Despite the passage of nearly two decades, Go First has yet to surpass the milestone of operating 100 planes, and its market share has not experienced significant growth. However, the airline managed to remain operational while other carriers like Deccan, Kingfisher, and Jet emerged and subsequently ceased operations. In 2009, there were discussions regarding British Airways potentially acquiring a 25% stake in Go First.

Nevertheless, Go First viewed its gradual growth as a deliberate strategy rather than a hindrance. The company acknowledged that the challenging aviation landscape in India influenced their decision to prioritize profitability over expanding market share and increasing the number of destinations and aircraft in their fleet.

Jeh, the airline’s representative, expressed this approach in an interview with ET in 2005, stating, “My motto is to stay small until the customer has a need, not a want. Why would I introduce 100 or 50 aircraft on the first day and ask customers to fly with me? Policies, infrastructure, and inefficiencies require time for improvement. Yes, I am operating at a slower pace. However, being slow and steady is what wins the race. And as of now, the race has not yet begun.”

“Longevity,” he had proclaimed, referring to the Wadia Group’s 275-year existence. “Who else can boast such a legacy? Will I succumb to greed or compromise on ethics? There is immense value in sustaining an enduring presence.” However, Go First could not attain such longevity. While the 275-year-old Wadia Group remains unwavering, Go First has stumbled.

Behind Air Deccan

“Unless you possess an unwavering obsession for aviation, bordering on madness, achieving significant success is improbable,” shared Captain GR Gopinath, the visionary behind Air Deccan, India’s inaugural low-cost carrier, in a recent interview with ET. “…Go First has barely managed to survive. Continuous growth is imperative for establishing economies of scale and fostering opportunities for pilots, engineers, and others.” IndiGo, which took flight a year after Go First, reached the milestone of operating 100 aircraft in 2014. At that time, Go First, a nine-year-old airline, possessed a fleet size that was less than one-fifth of IndiGo’s. Presently, Go First operates with fewer than 60 planes, while IndiGo’s fleet has surpassed 300.

At one juncture, Go First did recognize the need to expand its fleet and become a 100-plane airline by 2025-26, even if it didn’t aspire to match the stature of a Goliath like IndiGo. In 2019, it simultaneously launched operations at nine international stations, with plans to add one aircraft per month in the coming years. However, the pandemic disrupted its ambitions of soaring higher, including its plans for an initial public offering (IPO).

According to aviation expert Anjuli Bhargava in ET, Wadia’s efforts in establishing GoAir in November 2005 were commendable. Bhargava highlights that Wadia had a clear vision from the beginning, unlike others such as Vijay Mallya. Wadia aimed to make air travel more accessible and affordable for every Indian, and he effectively executed this goal. Throughout the past 15 years or so, Wadia consistently demonstrated a strong vision, delivered a quality product, maintained operational efficiency, and relentlessly pursued cost reduction in every aspect of the business.

Jeh’s parachute jump

Something must have gone terribly wrong for Jeh to abandon his dream project. In 2021, Jeh departed from Go First amidst a controversy. He resigned as the airline’s Managing Director (MD), and shortly after, he also stepped down as the MD of Bombay Dyeing, another company within the Wadia group. Furthermore, Jeh asserted ownership of Go Air trademarks and domain names, which were registered under his own company, Go Holdings. Go Air responded by stating that it would explore legal options against Go Holdings and Jeh in order to establish its ownership of all the trademarks and domain names. As a result, Go Air was rebranded as Go First, and eventually, the trademark dispute was resolved.

Jeh’s departure was rumored to be the outcome of a conflict with his father, Nusli Wadia, although the Wadia Group denied this. Despite recording profits for several years, Go First experienced significant losses in FY19, which further escalated in FY20. The airline’s losses have now doubled from Rs 1,809 crore in FY22 to Rs 3,600 crore (provisional) in FY23, marking the largest loss since its establishment in 2005. The Wadias injected approximately Rs 2,000 crore into the company. Additionally, there were ongoing management issues, with at least nine CEOs leaving the company throughout its existence. Among them was Wolfgang Prock-Schauer, a respected aviation professional who had previously led Jet Airways for years. Go First sued Prock-Schauer upon his departure in 2017, alleging data theft. Jeh’s resignation as MD was likely part of a strategy to enable professional management, similar to what transpired in another highly profitable group company, Britannia.

The failure to retain top management ensured that Go First never achieved the growth it could have under more stable leadership, as Bhargava pointed out.

The fading of the vision

Jeh stood apart from his older brother Ness, who often made headlines with his extravagant lifestyle. Unlike Ness, Jeh was fueled by a clear vision and was renowned for his diligent work ethic. He began his journey at Bombay Dying, starting from the ground floor as a management trainee, despite receiving a modest salary. He invested his family’s wealth into his airline venture.

“I am like a tortoise running a marathon. While my peers were in a rush, acquiring companies and purchasing aircraft, I took a different approach,” expressed Wadia in an interview with ET, reflecting on his airline’s seven-year journey. “I am not in it for the short term; I am here for the long haul. My family has been rooted in this industry for 300 years. I don’t even see the finish line, nor do I see the starting line. So, if someone puts on their running shoes and sprints past me, I’ll ask them, ‘Where are you going in such a hurry? Why the rush?’ I fail to comprehend their destination… And eventually, you witness these sprinters struggling to maintain that pace and eventually slowing down… Meanwhile, I’m still walking, carrying my backpack and utilizing my limited resources.”

Amidst the accusations of mismanagement and sluggish growth, Jeh deserves recognition for keeping his airline afloat, while many others entered the scene with great fanfare only to disappear soon after. He courageously forged ahead in the Indian aviation industry, often referred to as the graveyard of airlines due to numerous failures. Some might even argue that it is not Go Air but Go First that should be deemed a failure.

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