GoAir to start new services; looking at investor proposals
26 May 2007
Addressing a seminar on `MRO in India - present and future', organised by the Aeronautical Society of India, Wadia said that while Go Cargo would provide cargo related services, Go Ground would concern itself with ground handling services. He also mentioned that the airline's tie-up with Singapore Airline Engineering Company, for the maintenance, repair and overhaul (MRO) of aircraft, would become functional by July this year.
The operation would initially offer services in 13 domestic cities, he said. 'The decision to invest in these support services was probably a good one as this would help reduce our costs,' Wadia said.
Talking about investor interest in his airline, Wadia said that they had received proposals from high net worth individuals and foreign institutional investors who wished to pick up a stake in the airline.
"While we are not offloading any stake, several HNI, FII and also strategic investors, some of whom have experience in the aviation sector, have shown an interest in the airline. The various offers are for picking up between 26 and 45 per cent stake. Even as the proposals are being examined, we are clear that the management of the airline will remain with the Wadia group," he added.
Wadia declined to speculate on the amount of money that he intended to raise through these investors, or the names of individuals and parties interested in the airline.
