The Hindu Business Line : GoAir scales down aircraft orders

Mr Jeh Wadia, Managing Director, GoAir India Pvt Ltd, and Ms Miranda Mills, Vice-President (Sales), Airbus India, in the Capital on Thursday. The airline received the first of the 20 Airbus planes it ordered. —

Our Bureau

New Delhi, Oct. 4

GoAir has not only scaled down its aircraft induction plan by more than 30 per cent but also called off its proposed tie-up with Singapore Airline Engineering Company for setting up a maintenance repair and overhaul facility, the Managing Director, Mr Jeh Wadia, said on Thursday.

“The airline now plans to have a fleet of 34 aircraft by 2011 instead of 50 that was planned earlier. As long as issues connected with policy, infrastructure and taxation are not sorted out we feel it is prudent to have a small fleet. We had not estimated so many aircraft coming into the market when Go had placed the initial order. We believe in being profitable by being conservative,” Mr Wadia said.

Better connectivity

The airline that took delivery of its first owned aircraft on Thursday and is to induct another owned aircraft into the fleet in November, plans to offer greater connectivity between the existing cities that it flies to.

“With the first aircraft we plan to offer greater connectivity between Mumbai, Delhi, Goa, Hyderabad and Bangalore. We plan to have 18 aircraft by 2009 before growing to a 34 aircraft fleet,” Mr Wadia added.

Confirming that Go had called off the tie-up with SIA Engineering, Mr Wadia said they were in talks with a number of other players for setting up an MRO. “There were a number of issues that could not be resolved. Therefore, the tie-up with SIA was terminated. But we are committed to the MRO project,” Mr Wadia said.

Meanwhile, the airline is still evaluating the offers it has received from some high net individuals and foreign institutional investors wanting to pick up a stake in the airline. “We have no announcement on this as yet. We have a certain amount in mind before deciding on who we should offer a stake to,” Mr Wadia said, adding that the airline planned to divest up to 26 per cent of stake.