By IANS
New Delhi : The Wadia group promoted low-cost airline GoAir received the first of its 20 Airbus aircraft, contracted for a billion dollars, here Thursday.
The airline has now increased its fleet size to five. GoAir expects to receive the second aircraft next month.
GoAir placed an order worth $1.2 billion for 20 new Airbus 320. The delivery is expected to be completed in the next 18 months.
“As a result in increase in passenger traffic, we have decided to induct additional flights in key growth sectors,” said Jeh Wadia, managing director of the airline on receiving the first aircraft.
The airline is hopeful that by March next year it would be able to increase fleet size to seven.
Wadia ruled out apprehensions that the group is to sell 26 percent stake to strategic investors.
“I am saying it clear and loud that as of now we are not selling 26 percent of stake in GoAir. Investors are interested to invest but I am not willing to sell. We want to go slow on this issue,” he said.
“The industry has been shaken up with mergers and acquisition in the last few months. This is a good sign for low-cost airlines,” he said.
Wadia added that the acquisitions would help low-cost airlines to cut down operational costs and ground handling costs.
He said GoAir’s aim was not to become an international airline but to achieve its target of carrying 15 million passengers.
“Being an international airline is not on our radar. Our aim is to carry 15 million passengers. Then we can go international. Even if we go international, it would only be in Asia and the Middle East,” he said.