Go Air to invest 2 bln in aircraft acquisition

Mumbai, Apr 19 (UNI) Low cost airline GoAir today said it will invest 2 billion dollars for acquiring new aircraft in the next four years.

''We are going to acquire 20 aircraft at a cost of 1.6 billion dollars by 2009, and another 14 at a cost of 2 billion dollars will join the fleet by 2011,'' GoAir Managng Director Jeh wadia said while annolunciy Preity Zinta as the airline's first brand ambassador.

''We are committed to achieve a leadership position in the low-fair airline segment and in the next four years the airline will have 34 aircraft in its fold,'' Mr Wadia said.

In a short span of time, GoAir has been able to capture five per cent of the market share, while generating recognition and loyalty among its passengers and also within the airlines industry, he said.

Launched in November 2005, with scheduled service to Goa, Ahmedabad and Coimbatore from Mumbai, the airline operates CAT III complaint A320 aircraft with a single class, 180-seats configuration, and now plans to expand its fleet to 35 in the next four years.

According to Mr Wadia, the GoAir in its very first year of inception, its revenue grew by 60 per cent, and has been the No 1 airlines in the last three months in terms of load factor.

''We have been consistent not only in the load factor but also with the yeild,' he added.

Stating that 60 per cent of the total cost goes to the government and the oil companies, Mr Wadia called the Government to reduce taxes.

''Things in the aviation industry will certainly get better, if the government addresses the issue of taxes and infrastructure and out sourcing,'' Mr Wadia added.

UNI