GoAir seeks finance for fleet expansion

26 March 2009

Low-cost airline GoAir is looking at options for raising about $400 million to finance the 10 Airbus A-320 family aircraft that it has already contracted for, the airline's chief executive officer Edgardo Badiali, said in New Delhi on Wednesday.

Addressing a press conference, he explained, ''We will have 10 aircraft for which funding has been completed in our fleet soon. We plan to induct another 10 Airbus A-320 aircraft by 2012, thereby doubling our fleet strength.

''At the moment we are looking at all options for financing the 10 aircraft deliveries, planned till 2012. Options include sale and lease-back as also direct bank finance,'' Badiali said.

He added that the airline is set to expand its footprint to include Amritsar, Bangalore and Chandigarh among its destinations. With this, Badiali said the number of cities reached by the airline will increase to 11.

''The launch of the routes is part of the airline's summer schedule that comes into effect from 29 March. In addition to the new routes, the airline has also added new connections, taking the total number of weekly flights operated to 474,'' he said.

Badiali also denied reports that GoAir is in merger talks with SpiceJet, its larger rival in the Indian private aviation market. ''We are not looking at any kind of consolidation or merger with SpiceJet or any other airline. It's one of many rumours,'' GoAir chief executive officer Edgardo Badiali told reporters in New Delhi.