Wadia group-promoted budget air- carrier GoAir is in the process of raising around USD 100 million to fund its aircraft acquisition programme. The airline is currently in talks with financial institutions (FII) and a deal is expected to be arrived at over the next two-three months. 

GoAir, which currently has ten A-320s in its fleet, plans to take delivery of another ten aircraft over the next three years. “We are negotiating with some banks and financial institutions to raise around USD 100 million (around Rs 400- 500 crore), both in India and abroad,” said sources close to the development.

The airline, however, is still evaluating instruments to raise the funds, they said, adding that a decision on the issue is likely to be taken shortly. The resources raised would be utilised to fund the aircraft acquisition plan. The airline expects to complete the fund-raising exercise latest by January next year. 

With the growth in aviation sector picking up after a two years of recession, the airline in July this year had advanced the delivery of ten planes, the orders for which it had placed with the European aircraft maker Airbus in 2006. The airline had placed orders for 20 A-320 planes then worth USD 1.2 billion, with their deliveries staggered over two tranches of ten aircraft each. While the first tranche of delivery of ten aircraft was completed last month, the delivery of the second tranche of airplanes is expected to begin from September next year.