GoAir signs $7.7 bn deal with Airbus for 72 A320neos

By: | Updated: July 12, 2016 7:57 PM

GoAir, India's fifth-biggest carrier by passengers travelled, announced on Tuesday a preliminary agreement with European planemaker Airbus to buy 72 A320neos in a deal worth about $7.7 billion at current list prices.

The deal will help continue GoAir's growth, the airline said in a statement, and built on its existing order for 72 of the same aircraft which it made in 2011. (Reuters)The deal will help continue GoAir’s growth, the airline said in a statement, and built on its existing order for 72 of the same aircraft which it made in 2011. (Reuters)

GoAir, India’s fifth-biggest carrier by passengers travelled, announced on Tuesday a preliminary agreement with European planemaker Airbus to buy 72 A320neos in a deal worth about $7.7 billion at current list prices.

The deal will help continue GoAir’s growth, the airline said in a statement, and built on its existing order for 72 of the same aircraft which it made in 2011.

“The new aircraft will help us in unlocking new domestic routes while providing a springboard for continued international network expansion in the years to come,” Go Air CEO Wolfgang Prock-Schauer said in the statement.

Airbus sprinted towards deals worth $20 billion to seize the initiative at a rain-soaked Farnborough Airshow on Tuesday, but industry executives said the mostly lacklustre event confirmed a recent boom in aerospace orders was finally fizzling out.

Europe’s Airbus and U.S. rival Boeing have enjoyed years of strong growth thanks to rising air travel and demand for new fuel-efficient models.

On Monday, they both increased their forecasts for aircraft demand over the next 20 years, betting rising wealth in Asia would continue to boost airline passenger numbers.

But analysts are worried growing risks to the global economy, from slowing growth in China to Britain’s decision to leave the European Union, could dry up orders or even lead to some cancellations.

Last month, GoAir put into operations its first Airbus A320 neo plane. GoAir is also the first airline to use this aircraft in Spaceflex configuration with 186 seats enabling better service and availability during peak seasons, without compromising on the comfort of the traveller, it said.

The new A320neo incorporates a host of innovations, including latest generation engines and large Sharklet wing-tip devices, which provide for 15 percent saving of the fuel from day one and 20 per cent by 2020.

This is equivalent to a reduction of 5,000 tonnes of CO2 per aircraft per year, it added.

(With inputs from PTI)

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