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GoAir in talks with Airbus for A320neo planes

One of the persons said the talks are for about 70 A320neo planes. At list prices, the total value of the planes would be $7.5 billion.

, ET Bureau|
Updated: Jul 11, 2016, 05.20 PM IST
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One of the persons said the talks are for about 70 A320neo planes. At list prices, the total value of the planes would be $7.5 billion.
One of the persons said the talks are for about 70 A320neo planes. At list prices, the total value of the planes would be $7.5 billion.
MUMBAI: Budget carrier GoAir is in discussions with Airbus for its next big plane order, said three people in the know.

One of the persons said the talks are for about 70 A320neo planes. At list prices, the total value of the planes would be $7.5 billion. The actual value of the deal however, would be lesser as airplane manufacturers give discounts on voluminous orders.

A second person said nothing has been finalised yet and that there may be tweaks to the final agreement, "if and when that happens". Both insisted anonymity. "We don't comment on any discussions which may or may not be taking place." said an Airbus spokesperson. Go Air too declined to comment.

The Wadia group-controlled airline already has an order for 72 of the Neos or New Engine Options, the upgraded version of the 180-seater passenger aircraft, the most popular airliner in the world. The airline got its first Neo last month. A fresh order would set it on a hitherto unseen aggressive growth path. Go Air, which started operations in 2005, has been happy to expand cautiously building its fleet to just 20 planes in the last 16 years. This is in stark contrast to its peer IndiGo, India's biggest airline by market share which has placed two record plane orders since inception.

Go Air is now also drawing up plans to start international operations. According to sources, it plans to fly to the UAE, Thailand, Maldives and China and also to countries such as Kuwait, Iran, Kazakistan and Turkey. It also plans to operate charter services to Europe.

Airbus has more than 200 planes flying in India and an order book for 526 more. On an average the plane maker is slated to deliver one plane every week to Indian carriers for the next 10 years.

According to Airbus’ latest global market forecast, Indiarequires over 1,600 passenger and freighter aircraft in the next 20 years to 2034.
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