GoAir has firmed up the order for 72 A320 neo planes, estimated to be worth over Rs 52,000 crore, as the no-frills airline expands its fleet and prepares to fly overseas.
With the latest development, the carrier -- part of the Wadia group -- now has placed firm orders with Airbus for 144 A320 neos (new engine option).
The airline inducted the first A320 neo -- which have better fuel efficiency -- in June last year and now has a fleet of 23 aircraft.
"With the neo induction, Go Air will expand its network and offer fliers better connectivity and continue its growth as one of India's preferred low-cost airline," it said in a release today.
The firm contract for the 72 planes was inked by GoAir on December 30 while it had entered into a Memorandum of Understanding (MoU) with Airbus in this regard in July last year. This is in addition to the earlier order for 72 such aircraft.
While GoAir did not disclose the total value of the latest order for 72 aircraft, a back of the envelope calculation based on Airbus listed price for 2016 shows that the order would be worth more than Rs 52,000 crore. This is on the basis of current foreign exchange rate and listed price of USD 107.3 million for one A320 neo.
"The A320 neo provides the latest technical innovations and unbeatable economics... This new order will further strengthen our network by adding more domestic and international routes in the years to come," GoAir Managing Director and CEO Wolfgang Prock-Schauer said.
The single aisle A320 neo family of aircraft has new generation engines and Sharklet wing tip devices, which together deliver over 15 per cent in fuel savings while 20 per cent would be there with further cabin innovations by 2020, the release said.
"We are delighted that GoAir has renewed its confidence in Airbus. The A320 neo offers unbeatable operating costs... By doubling its order to 144 aircraft, GoAir will benefit from a greatly expanded network," Airbus Commercial Aircraft Chief Operating Officer (Customers) John Leahy said.
Not only GoAir, rival IndiGo is also flying a significant number of A320 neos while national carrier Air India is expected to take delivery of the first such aircraft next month.
GoAir, which has received government's approval to fly to nine countries including Iran, Uzbekistan and Kazakhastan, is likely to start international operations this year.
Disclaimer: No Business Standard Journalist was involved in creation of this content
