GoAir to take delivery of its first A320neo plane this week1 min read . Updated: 31 May 2016, 03:27 PM IST
GoAir will take its 20th airplane and first Airbus A320neo this week and nine will follow this year
Mumbai: Go Airlines (India) Ltd, which runs low-fare airline GoAir, will take delivery of its first fuel efficient A320neo plane from Airbus SAS this week, a move that can positively affect the proposed share sale and cost of operations.
The airline, which has a 8.5% market share in domestic traffic, had placed an order for 72 A320neo planes that offer 15-20% savings on jet fuel, which makes up the largest chunk of spending by airlines.
GoAir will take its 20th airplane and first Airbus A320neo this week and nine will follow this year, according to two people close to the development.
“The first A320neo plane will be flying in 10-15 days after the delivery following the tests by engineering and maintenance division," one of the two cited above said on the condition of anonymity.
A GoAir spokesperson declined to comment.
GoAir’s initial public offer (IPO) timing is directly linked with the induction of A320neo planes into its fleet and it would finalize the share sale plan once it receives clarity on the delivery schedule from Airbus.
In October 2015, the IPO of InterGlobe Aviation Ltd, owner of India’s largest and most profitable airline IndiGo, received demand for 6.14 times the shares it offered investors, as financial institutions and rich individuals sought to tap the world’s fastest growing aviation market. Shares of InterGlobe Aviation rose 14.7% above their offer price of ₹ 760 on the airline’s trading debut.
IndiGo took delivery of Asia’s first A320neo aircraft on 10 March from Airbus. On 29 February, IndiGo said Airbus had confirmed that it will deliver 24 A320neo aircraft by March 2017.
Induction of A320neos is also critical for IndiGo—which has been consistently profitable since 2009, a feat unrivalled by any other domestic airline—to maintain its dominant market share in Indian aviation.