The Wadia-group backed, budget carrier, GoAir has placed a Rs 32,400-crore aircraft purchase order for 72 " Airbus 320 NEO" aircraft. The deliveries will begin from 2015, with an induction rate of 15 aircraft per year. That is, 2,700 GoAir seats to be added every year till 2020.
The order for A320 planes brings GoAir's total order book with Airbus to $9.6 billion, Managing Director Jeh Wadia told reporters on Thursday.
Prior to this, the airline had placed an order for 20, A320s and these aircraft will be delivered over the next 24 months. With the latest deal, the total aircraft on order with GoAir jumps up to 92. Currently, the 2005-born airline, which adheres to the low-cost model of having a uniform aircraft fleet, operates 133 daily domestic flights with a fleet of ten A320 aircraft. "We are evaluating various fund-raising options (for the deal). It will be a combination of debt and equity," Jeh Wadia, GoAir managing director, said at a press meet.
The placement of an additional 72 aricraft is a game-changer for GoAir and the Indian aviation sector, said the airline spokesperson. "These aircraft will give us a further competitive advantage of upto 15% on efficiency, primarily gained from a much improved fuel burn," said Wadia.
GoAir also announced the appointment of Giorgio De Roni as its chief executive officer. "In his last job, he was instrumental in increasing passenger traffic from 1 to 8 million, increasing market share from 6 to over 30% and thereby delivering substantial profits to the $1 billion Italian private airline Air One," said Wadia introducing the new CEO.
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