Indian carrier GoAir in talks with Airbus for 20 A320 aircraft

23 Nov 2007

New Delhi: Indian low cost carrier, Go Airlines Pvt Ltd, may soon place an order with Airbus for the purchase of 20 new A320 aircraft, aimed at growing its fleet from the current six to 41 airplanes, by March 2012.

The airline has said that it is targeting a larger share of the country''s booming aviation market.

At a list price of $70 million per A320 aircraft, the deal for these planes would be valued at $1.4 billion.

The Mumbai-based airline, part of the Wadia Group, already has a $1.2 billion order in place with Airbus for 20 planes, of which it has already received two deliveries. The last of the deliveries is due by mid-2009.

Reports would indicate that the airline might be considering a sale and leaseback arrangement for the fresh orders. The leasing cost for such aircraft is around $400,000 a month.

It would also appear that GoAir might consider picking up other types of planes, such as ATR turboprops and Boeing aircraft.