The Hindu Business Line : GoAir to tie up with Singapore Airlines

GoAir expects to finalise its proposed partnership with Singapore Airlines to set up a chain of MRO (maintenance, repair and overhauling) facilities in India in the next two months.

Mr Jeh Wadia, Managing Director of the company, told presspersons that the joint venture will set up between eight and 12 MRO facilities. These facilities will be able to cater to the maintenance requirements of both Airbus and Boeing aircraft, apart from all wide-bodied aircraft.

"We will be looking for servicing international flights and this represents a huge market," Mr Wadia said.

He was not willing to disclose the proposed investment for this venture, except saying that it would be substantial.

Equity distribution

Regarding the equity distribution between the two partners, he said this was not finalised yet. GoAir is having an open mind on whether to have controlling stake in the joint venture.

The idea is to leverage the low cost of engineering services in India by setting up an engineering facility under Go Engineering. After the restructuring, the Wadia family has created a common holding company, Go Holdings. Another area that the low-cost airline is looking at is air cargo movement. "This is also a huge market. Initially, we will be buying belly space for cargo and later we may think of buying cargo planes," Mr Wadia said.

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