An announcement could come as early as this week at the Farnborough Air Show in England, though talks may extend further into the year, said the people, who asked not to be identified because the negotiations are ongoing.
GoAir is one of only three carriers that have begun operating the revamped Neo version of Airbus's single-aisle jet, so a follow-on order would provide a vote of confidence in a model that's been dogged by issues with its Pratt & Whitney turbines since last year. The Indian carrier is expanding its fleet in the world's fastest-growing major aviation market where at least seven other budget airlines operate.
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Air travel in India grew more than 20 per cent in 2015, compared with 10 per cent in China and less than 5 per cent in the US, the International Air Transport Association said in a December presentation. GoAir already has a contract for 72 A320neos, two of which have been delivered, after announcing a deal for the jets in 2011.
The new batch would again use Pratt engines, rather than a competing powerplant from CFM International alliance of General Electric Co and Safran SA, according to the people.
GoAir is controlled by India's Wadia Group, whose businesses also include textiles, chemicals and real estate, according to the airline's website. Started in late 2005, it operates 140 daily flights across 22 destinations within India.