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GoAir plans to raise $80-100 mn to fuel expansion

GoAir plans to raise $80-100 mn to fuel expansion
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First Published: Tue, Jun 03 2008. 04 49 PM IST
Updated: Tue, Jun 03 2008. 04 49 PM IST
PTI
Mumbai: The Wadia group-promoted budget airline, GoAir, is in talks with potential investors to raise around $80-100 million to help propel its future expansion.
“Talks are on for the past some months...however, it may take a little while before the promoters take the final call on the issue,” a source close to the development told PTI.
Elaborating, the source said that that GoAir was only seeking additional investment and would not be hiving off stake to investors.
“The on-going negotiations are only for raising additonal funds. The company has no plans to sell or dilute its equity holding in any manner,” he said.
Asked the identities of the parties with whom GoAir was in negotiations with, the source said that they comprised of both institutional investors as well as others.
The company was also in talks with some private equity players, the source said.
GoAir, had, in 2006, placed orders for 20-aircraft with Airbus and has taken delivery of four aircraft so far. It plans to take delivery of nine more aircraft in the next 18-month period.
The official said that GoAir was planning to acquire 20 more Airbus aircraft after 2011. The airline expects to receive the last tranche of its earlier Airbus order by 2011. The airline aims to have a fleet-size of 40 aircraft by 2013. The Mumbai-based air-carrier currently operates 1,400 flights per month from nine airports across the country. It presently has six aircraft. The airline currently enjoys a market share of 4.6%.
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First Published: Tue, Jun 03 2008. 04 49 PM IST