Warren Buffet's quote, "It takes 20 years to build a reputation and five minutes to ruin it," is particularly relevant to the current situation of Go First airline with recent incidents that have severely impacted the airline's once-esteemed name.The abrupt cancellation of all flights in May 2023 has caused significant inconvenience to thousands of customers, leading to widespread disappointment and frustration. The possible job losses have also added to employees' distress, leaving them uncertain about their future. The airline's bankruptcy filing further compounds the situation as Go First's assets fall short of covering its liabilities.The incident comes at the peak of the holiday season, and has led to other airlines hiking fares, which may thwart bookings and travel.The downfall of the airline has again raised questions about why big brands make blunders.However, failure is often a more effective teacher than success, as it forces us to analyse mistakes and learn from them to improve. Therefore, examining the factors that may have contributed to Go First's downfall and what other brands can learn to avoid similar mistakes is important.
The foundation of a great brand lies in its exceptional products, and the backbone of such products is the use of high-quality ingredients or components. In the aviation industry, the engine is undoubtedly the most critical component of an airplane, and having multiple engine suppliers can offer significant advantages. Unfortunately, Go First's over-dependence on one supplier, Pratt & Whitney, proved a considerable challenge.Persistent problems with Pratt & Whitney engines caused the percentage of Go First's grounded aircraft to increase from 7 percent in December 2019 to 31 percent in December 2020 and, alarmingly, to 50 percent in December 2022. The question that arises is why alternate arrangements were not made in time, considering the problem with the supplier has existed for years.Surprisingly, the Directorate General of Civil Aviation (DGCA) had called for meetings with GoAir and IndiGo in August 2019 regarding recurring engine snags on Pratt & Whitney-powered engines. IndiGo managed to keep the issue under control by using two engine suppliers, Pratt & Whitney, and CFM International. But Go First didn’t.To effectively manage risks, improve reliability, and maintain business continuity, brands need to implement a multi-vendor strategy. It not only diversifies a brand's supplier base but also fosters healthy competition between vendors, resulting in more favourable pricing and superior quality components, ultimately benefiting the brand and its customers. In cases where a brand is compelled to sign an exclusive contract with a vendor for any reason, it is crucial to have proper contingency planning in place, including termination clauses and alternative options to mitigate potential negative impacts on the brand's operations.
Undertaking a rebranding exercise involves a significant investment, including communication and engagement with the audience. In 2021, GoAir rebranded itself as Go First and underwent a strategic repositioning to establish itself as an ultra-low-cost carrier. The company's leaders promised to prioritise customers by providing attractive airfares, clean flights, and on-time performance.However, the abrupt suspension of Go First flights has exposed the disparity between the brand's promises and the ground reality. The chaotic situation has caused significant disappointment among customers and dealt a severe blow to the brand's reputation. The airline's claims of providing quality service, low pricing, and putting the customers first have proven to be untenable and unsustainable.To avoid such situations, brands must ensure their promises are realistic, achievable, and aligned with their capabilities.
First Published: May 05, 2023, 13:27
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