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Low-cost carrier, GoAir plans to acquire 72 new aircraft by 2020 for approximately $7.2 billion, taking the total strength of the fleet to 92, Giorgio De Roni, Chief Executive Officer,said on Tuesday.
An A-320, priced at $100 million, will be delivered on February 1, and deployed on February 4. At present, GoAir has 13 aircraft and by 2014, it will have 21.
In order to enhance its presence in the western Indian market, the airline will launch new daily flights on the Delhi-Ahmedabad and Ahmedabad- Kolkata routes on February 4. By 2014-15, it expects to increase its revenues from Gujarat routes from the existing 3% to 10%.
GoAir is banking on loyal customers from the corporate and SME sectors and looking at non-metro stations like Srinagar for further growth.
De Roni said due to a 79% hike in fuel prices and rupee depreciation against dollar in the last three years, the fuel cost and taxes now constitute 54% of the ticket cost. In order to save up to 4% on fuel cost and lower the level of gas emission, the airline would use new aircraft equipped with advanced technology.
GoAir, having a 7.6% market share in India, is the only low-cost carrier to offer web-based loyalty programme to its customers, he said.
The CEO said the airline is not considering, for now, to start international flights as the domestic market in the country itself has great potential. India is expected to emerge as the third largest aviation market in the world by 2020.
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