GoAir in big-time push, orders 72 Airbus jets in $7.2-bn deal
Domestic low-cost airline GoAir, the Wadia group promoted company, on Thursday announced it has placed an order to buy 72 Airbus A320 NEOs, for $7.2 billion (Rs32,400 crore).india Updated: Jun 16, 2011 23:41 IST
Domestic low-cost airline GoAir, the Wadia group promoted company, on Thursday announced it has placed an order to buy 72 Airbus A320 NEOs, for $7.2 billion (Rs32,400 crore).
The company said this is apart from an earlier order of 20 aircraft with Airbus. The delivery of Airbus A320 NEOs would start within five to seven years with about 15 planes being delivered every year.
When asked about how the company is funding the purchase Jeh Wadia, managing director, GoAir said, “We would be using a combination of debt and equity. We are not in talks with anyone regarding this yet.” Wadia refused to specify whether GoAir would be listed on the capital market as there is a speculation that the company is looking to hit the primary market with an IPO of around Rs500 crore. Wadia said the company has already paid deposit money for the aircraft."GoAir is a 100% family-owned company and we would not be using funds from any other listed entity of the Wadia group," he said.
The company also announced the revamp of its management team. Giorgio De Roni, who was earlier with Air One, an Italian private airline, has joined GoAir as CEO. Wadia said there could be more reshuffle in the group and that the company requires more engineers and pilots.
The company said its revenue has gone up by about 61% in last three years and its operating margin was 15.7% in the period.