GoAir can now Fly International; May Launch an IPO

Today, GoAir is eligible to operate on International routes || GoAir will soon come up with an IPO.

June 2, 21016.

Wadia-Group promoted Go Airlines (India) Ltd, which runs the low-fare airline GoAir, has taken delivery of the first of its seventy-two A320neo aircraft from Airbus Industrie (AIB, Toulouse Blagnac) following the arrival of VT-WGA at Delhi.  It is the third operator in the world to do so; the other two being IndiGo and Lufthansa.

800x600_1464861487_A320neo_GOAIR_GoAir has said the airline plans to take delivery of 8 more neo planes by end of March 2017 with a total of 26 expected to be delivered by the end of 2017.

The Mumbai based GoAir currently has 153 daily flights. Its present fleet of 19 aircraft has been serving 22 Indian destinations on 53 routes. With the Neo induction, GoAir will like to expand its network and offer fliers better connectivity and continue its growth as one of India’s preferred low-cost airline. The new aircraft will shortly begin revenue operations on the India’s most lucrative trunk route – Delhi-Mumbai.

The A320neo delivered to GoAir is configured in a conformable layout with the innovative Spaceflex cabin concept. It will have use for six more seats compared to the standard 180.  The first seven rows will also have greater space.

images (3)VT-WGA becomes the lucky aircraft for GoAir as it pushed its fleet strength to the magical number 20.

The present government rules currently require airlines to have a domestic flying experience of five years and a fleet of 20 aircraft (or 5/20) to become eligible to fly international. (The 5/20 rule may change when the New Aviation Policy is implemented in near future).

“With the induction of the first of our 72 NEO aircraft on order, we have reached a fleet strength of 20 aircraft. With this expansion we will be able to strengthen our domestic network and will also be available to fly on international routes,” Wolfgang Prock-Schauer, CEO, GoAir said in the release.download (6)

The launch of GoAir’s initial public offer (IPO) timing is directly linked with the induction of A320neo planes into its fleet.

In October-November 2015, the IPO of InterGlobe Aviation Ltd, owner of IndiGo, was subscribed 6.14 times, A320neo being the chief factor.

When IndiGo did not receive the neos by December 2015, its shares nosedived. It recovered partially later when IndiGo took delivery of Asia’s first A320neo aircraft on 10 March from Airbus. IndiGo has said that Airbus had confirmed that it will deliver 24 A320neo aircraft by March 2017.

Inductions of A320neos, its optimum utilisation are critical for both IndiGo and GoAir to survive in India’s aviation market. IndiGo has been consistently profitable since 2009, a feat unrivalled by any other domestic airline.

The A320 is the most popular airliner in the world. One A320 aircraft takes off or lands somewhere in the world every two seconds, according to Airbus. The A320neo family is the world’s best-selling single aisle product line with over 4,500 orders from 82 customers since its launch in 2010 capturing almost 60% share of the market, Airbus said.

download (8)Kiran Rao, Airbus’ executive vice president for marketing and strategy said Airbus now has a total backlog of 526 planes from India and will deliver one plane a week to airlines in the country for the next ten years.  He was speaking on the sidelines of the annual general meeting of lobbying body the International Air Transport Association (IATA) at Dublin. Rao said that back in the 90s when he had been heading Airbus in India, “if we sold one plane in ten years, we were lucky!”

Additionally, AirAsia Berhad will start taking deliveries of its neos later this year. Rao said he expected some of them to come to AirAsia India, the Malaysian carrier’s joint venture with salt-to-software conglomerate Tata sons. AirAsia ordered 200 of the planes in 2011.

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