Low-cost airline GoAir is looking at options for raising about $400 million to finance the 10 Airbus A-320 family aircraft that it has already contracted for, the airline's chief executive officer Edgardo Badiali, said in New Delhi on Wednesday.

Addressing a press conference, he explained, ''We will have 10 aircraft for which funding has been completed in our fleet soon. We plan to induct another 10 Airbus A-320 aircraft by 2012, thereby doubling our fleet strength.

''At the moment we are looking at all options for financing the 10 aircraft deliveries, planned till 2012. Options include sale and lease-back as also direct bank finance,'' Badiali said.

He added that the airline is set to expand its footprint to include Amritsar, Bangalore and Chandigarh among its destinations. With this, Badiali said the number of cities reached by the airline will increase to 11.

''The launch of the routes is part of the airline's summer schedule that comes into effect from 29 March. In addition to the new routes, the airline has also added new connections, taking the total number of weekly flights operated to 474,'' he said.

Badiali also denied reports that GoAir is in merger talks with SpiceJet, its larger rival in the Indian private aviation market. ''We are not looking at any kind of consolidation or merger with SpiceJet or any other airline. It's one of many rumours,'' GoAir chief executive officer Edgardo Badiali told reporters in New Delhi.

Airline executives, including Badiali, have been saying that said there would be consolidation amongst the bleeding carriers as they look to cut costs and get out of the red. Last year, former arch-rivals Jet Airways and Kingfisher Airlines joined hands to cut costs by sharing codes and crew and by joint management of fuel.

"It's a small village, India and the aviation industry. Every time there is somebody who is talking to somebody, there is rumour of a merger or alliance," Badiali said. He added that any such decision would have be taken by the promoters and shareholders of GoAir.

"A strategic investor is always an opportunity (but it) depends always on which conditions," Badiali said. "You can never exclude anything. You would be also stupid to exclude anything."

GoAir is part of the Wadia group, which also owns clothing retail company Bombay Dyeing and Manufacturing and the country's top biscuit maker, Britannia Industries. It plans to take its fleet to 20 by 2012, up from six currently, and Badiali said these plans are on track.

The carrier would also break even in the fiscal year to March 2010, helped by new routes, better traffic and ticket sales, he added. The airline, which currently operates a fleet of four Airbus A320 planes, last month bought two new aircraft as part of its expansion plans. It plans to add 18 more aircraft by 2012.

"The funding for the first 10 aircraft has already been made while we are exploring options for finance for purchasing 10 others,'' Badiali said, explaining that an A320 costs about Rs200 crore ($40 million).

The company is also planning route expansion. GoAir has already added new destinations - Bangalore, Chandigarh and Amritsar, Badiali said.