Jet, GoAir may place $6.5bn worth of orders with Airbus
09 Jun 2011
Mumbai: India's domestic aviation sector may well have turned the corner going by the forward-looking moves of domestic airlines. Top Indian carrier, Jet Airways and low fare operator, GoAir, are set to place aircraft orders worth $6.5 billion with Airbus SAS at the Paris Air Show later this month.
Kingfisher owner Vijay Mallya has already announced he is in negotiations with investors to raise atleast $300 million by way of a bond issue for his airline.
The aircraft orders for GoAir and Jet are likely to be a mix of narrow-body A320 type for short-haul routes and wide-body aircraft for long-distance flying, sources said.
Wadia Group-promoted GoAir, the smallest budget airline in the country, is likely to place a large order for 50 A320s, worth $4 billion by list prices.
Naresh Goyal-promoted Jet Airways is likely to come up with a smaller order for 10 Airbus A330s, worth $2.5 billion. Jet's order is likely to bolster its international expansion plans.
GoAir could actually order a larger number of aircraft, sources said, if negotiations with Airbus work out as planned. A top-level Airbus team, apparently, is already in Mumbai negotiating with the Wadia Group.
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