It’s time for GoAir to expand further. GoAir has agreed to get 72 more Airbus A320neoaircrafts, increasing its order by double, showing that the company has its eyes set on spreading out its wings further.
A memorandum of understanding has been decided between Airbus the plane maker and GoAir today, and the deal is all ready to be finalized with formal signatures, for 72 planes and the current list price fixed is about $ 7.7 billion for the planes value. This is the latest information doing the rounds, till the time a formal pact is signed. Reports have stated that the airline can sell shares and raise almost Rs 1,000 crores, and the announcement of the deal announcement “comes ahead of an initial public offering (IPO) by the Wadia-group airline which has a share of 8 per cent in country’s domestic market.”
GoAir had ordered nearly 72 Airbus A320neo in 2011, and is now one of the leading three airlines which works the fuel efficient new generation aircrafts for business. Only two A320Neo airplanes have been delivered till now, and the rest of the pending aircrafts from the 2011 order will be sent till 2020.
As compared to SpiceJet and IndiGo, GoAir has been very careful in expansion plans and it was considered at one time, one of the smallest airlines in India. It has always stuck to adding 20 planes in ten years, though the airline has shown regular profits, but this time things are looking up. An airline official has stated that the present order that has been placed is for additional 72 planes after the earlier order and this will fulfill the plans of the airline to increase fleet in the period after 2021.
According to a statement given by , “The new A320neo provide us the competitive edge to achieve our growth targets and help us strengthening our presence in the wider region. It also reaffirms Go Air’s commitment to deliver the most modern, comfortable and excellent air travel experience to all customers as well as to strengthen the sustained positive growth and business expansion of the company. The new aircraft will help us in unlocking new domestic routes while providing a springboard for continued international network expansion in the years to come.”