New Delhi: Budget carrier GoAir on Tuesday said it has signed a deal with Airbus for buying 72 A320neo aircraft, a move that doubles the numbers from the earlier order of 144 planes.
The pact was signed at the Farnborough International Airshow and will be delivered between 2016 and 2025. At current average list price, the aircraft would be worth over $7.7 billion (more than Rs 51,000 crore).
GoAir has followed a careful approach of not chasing market share through rapid growth or acquisition over the last ten years. Since then the company grew its fleet size to 20 aircraft, introducing on an average two aircraft a year. Its small size will also make sure that it did not burn cash the way some of its peers did and allowed it to remain profitable.
The announcement will have a long-term commitment for growth. GoAir CEO Wolfgang Prock-Schauer said, "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."
Once finalised, the order will put GoAir in a growth route. The airline is also drawing up plans to start international operations. According to reports by ET, the company is planning to fly to the UAE, Thailand, Maldives and China and also to countries such as Kuwait, Iran, Kazakistan and Turkey. It also plans to operate charter services to Europe.
Airbus has more than 200 planes flying in India and an order book for 526 more, of which IndiGo alone will get 425. On an average the company will deliver one plane every week to Indian carriers for the next 10 years.
Meanwhile, experts say the additional order by GoAir signifies the airline's confidence in India's aviation growth and its intent to remain relevant in the crowded domestic skies. It’s a well-planned strategy to meet rising competition, they say.
The past decade has seen GoAir follow a cautious approach of not chasing market share through rapid expansion or acquisition. Its fleet size grew to 20 aircraft in the past ten years, inducting on an average two aircraft a year.
The small fleet also ensured that it did not burn cash the way some of its peers did and allowed it to remain profitable.
