GoAir rules out equity, debt financing plans

The no-frills airline of the Wadias, GoAir, today ruled out any equity or debt financing plans in the near future and announced expansion of its fleet and new routes, besides plans to launch a cargo carrier soon.

"We are not in a hurry to go for equity financing or debt financing. GoAir is run by the Wadia family and not the group and we are happy funding it ourselves," Jeh Wadia, MD of GoAir, said here.

Ruling out venturing into the share market, he said the Indian institutional and retail investors were "yet to understand the aviation industry. That is why it is difficult to justify a sound investment like Jet Airways getting almost half its IPO share in the sharemarket."

The airline, which inducted its 4th aircraft on lease, would add another 3 by November and raise the fleet strength to 18 by 2007-end and to 33 by 2008-end.

Wadia also announced the launch of three direct services from Delhi to Goa, Bangalore and Pune and two from Mumbai to Hyderabad and Chennai. GoAir currently flies to 13 destinations and operates 37 flights with 3 aircraft.