Low-fare carrier GoAir is keeping all options open to raise funds to finance its expansion plans. The company will decide on its fund raising plans during the calendar year 2017 which may include an IPO or any other mode of capital infusion.
Announcing the addition of Hyderabad as its 23rd destination on its network, company CEO Wolfgang Prock-Schauer said, “We will be raising funds as part of our expansion plans. We are not in a rush. We are keeping all options open including an IPO or any other capital infusion plans and will decide by next year,” he said.
“The calendar year 2017 will mark the beginning of an aggressive expansion in domestic operations and we may launch our international operations,” he said.
Go Airlines (India) a part of the Wadia Group company, with its brand GoAir, currently operates its fleet of 19 Airbus A320s and 2 A320neos across 23 cities with 144 flight. “We are planning to increase the fleet strength to 184 daily by December 2016,” he said. “Companies like us must look at funds to fund our expansion plans as we would be four-five times bigger than today,” he said.
GoAir plans to add three more destinations and may add at least 12 aircraft each year. It plans to increase its fleet size to 140 in the next 10 years from the current 23. The total fleet size will be 26 before March, 2017.
Apart from strengthening the domestic network, the company is also looking at operating to some international destinations by next summer. “We have identified a couple of locations in China, Iran, Saudi Arabia, and some locations in the Far East to offer our services,” he said.
On its growth, Wolfgang Prock-Schauer said that the domestic market is growing at about 20% and there are indications that this growth is likely to sustain over the years provided the input costs do not go up in the domestic market.